Categorized | International

Australia Posts Weak Housing Sales in January

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Housing sales once again fell in Australia during the month of January. The most recent reports indicate that housing prices dropped more than seven percent during the month of January, causing great concern among economists.

 

Some areas of Australia performed far worse than others, with Victoria dropping nearly twenty percent in January. Other areas, such as New South Wales and South Australia, also faced significant declines during the month of January.

 

Lenders had initiated interest rate cuts towards the end of 2011, but even those have been ineffective in providing a boost to the residential real estate market. The number of new homes being built has dropped tremendously, which is a very disconcerting sign for the health of the Australian economy.

 

The regions that are struggling the most were actually those that were leading the market during the housing boom. In fact, many of the new homes that were built during the boom were in Victoria. Now Victoria has one of the weakest new home markets in all of Australia.

 

The Australian government is considering further reform to help boost the housing market, though there has been no clear indication as to what kind of actions they will take. Economists believe that Australia will continue to see its housing market struggle until the global economy picks up, or serious reform is taken to revitalize the Australian residential real estate market. There have been talks that Australia will possibly reform its taxation system for new homes, though nothing concrete has been confirm at this point in time.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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