Categorized | International

Australian Real Estate Analysts Not Expecting Crash

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Real estate analysts in various countries across the globe are anxiously anticipating another potential crash in their respective residential and commercial property markets. However, those in Australia are much more positive about the nation’s real estate market.

Although the housing market in Australia has declined slightly in the last two years, much of the declines have been seen in luxury home sales. While the sales numbers are down slightly, prices have actually remained flat during the same time frame. In fact, in some cities such as Sydney have actually seen rices increase during the past two years.

Despite overall bleak global economic news, analysts in Australia are very confident that a crash will not take place, as Australia is not facing nearly the same predicament as has been seen in the United States. There are a number of different reasons as to why the situation in Australia does not mimic that in the United States despite the similarities that exist between the two countries.

One of the biggest reasons for the contrast in confidence levels between Australian real estate analysts and American real estate analysts is the overall lending process. Those that default on a mortgage loan in Australia are far more likely to face greater consequences than those in the United States. As a result, Australia has seen far less defaults on homes, even in the hardest of economic times.

By minimizing the number of defaults, Australia has been able to limit the supply of homes on the residential real estate market. As such, prices have not seen the same kind of price drop on homes that has taken place in the United States.

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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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