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Australian Real Estate and US Housing Markets May Weaken

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While most economists believe that the United States residential real estate market will continue to post slight gains throughout the year, some well-respected experts are not exactly confident that such an increase will be seen. In fact, one top economist believes that the United States housing market will see growth prevented by such conditions as the tightening of credit, poor inventory levels, and overall uncertainty with respect to housing values.

The United States housing market is the not the only one expected to stagnate in the coming year, according to some key economists. Some believe that Australia will also face a relatively stagnant performance over the next twelve months. Construction in Australia has declined, and will likely continue to do so despite actions being taken by the government to boost the market.

There are a number of different factors influencing the residential real estate markets in both countries. In the United States, the biggest threat currently resides in the potential European economic crisis. Many are watching to see if Greece separates itself from the rest of the continent by rejecting use of the Euro. If that does happen, many fear that the stock market will take a massive hit.

Any kind of negative impact on Wall Street as a result of the European issue could negatively impact the housing market, as investors will have lost out on a great deal of discretionary income.

After years of growth, Australia’s market is finally leveling off causing prices to come back down to realistic levels. There has been no clear sign yet as to whether the country will face a housing crisis, or if the current decline is simply a correction in pricing.

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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.

One Response to “Australian Real Estate and US Housing Markets May Weaken”

  1. Peter Bozinoski says:

    I certainly agree that the property market in Australia will remain steady for at least the next 12-18 months as a minimum. I must point out that, there have been suburbs in Melbourne that have achieved auction clearance rates well above 80% week in week out. What I am seeing out in the market place is properties under the $500K are being affected and also properties with a value of $1.5M and more are being affected even greater. The least affected sector are properties valued between $500K to $1.5M.

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