2009 will be a miserable year - despite interest rate cuts

This year is shaping up to be something of a shocker for the housing industry, despite the Reserve Bank of Australia’s (RBA’s) efforts to cut interest rates and support house prices.

According to the Housing Industry Association (HIA), 2009 will be bleak for construction companies as the demand for new houses withers, while those with home loan payments are likely to moan as house prices plummet.

However, there is a silver lining for first-home buyers, who will find the property market more affordable than its been in years, as low-interest home loans and first-home buyers grants offer great opportunities to get on the housing ladder.

“Current housing conditions remain very weak, notwithstanding some spark from the first-home buyer market,” said HIA chief economist Harley Dale.

First-home buyers may be eagerly awaiting the next RBA meeting on March 4th, when it will decide whether to make another interest rate cut, following up on the one percentage point it sliced off interest rates earlier this month.

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