Categorized | International

Australian Housing Prices In Freefall

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The residential real estate market in Australia took a massive hit in the last month, as home prices dropped significantly in comparison to the previous month and year. Home prices dropped nearly one and a half percent during the month of May, and they are down by more than five percent on the year.

Melbourne was one of the hardest hit cities last month, as the average home in the city experienced a price decline of nearly three percent. While there were some cities in Australia that did post mild increases in pricing, the overall performance at the national level was dismal at best.

Many had expected the government to intervene on the market over the past month in order to protect it from any further pricing declines. However, the actions taken by the government were minimal at best, and they certainly were not enough to prevent a further drop in home values.

Some economists are not overly worried about Australia’s market. They believed that the residential real estate market in Australia took place in late 2010. The declines being experienced now, they believe, can be chalked up to the market correcting itself.

Whether the market is correcting itself, or it is in an utter freefall, it is clear that potential homebuyers are coming out as the real winners. They are able to pay less to receive the same home that would have cost them a fortune in the past two years. In fact, the luxury market has been hit the hardest, meaning homes once reserved for the rich and powerful are more accessible than ever.

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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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