Categorized | International

Australian Real Estate Market Continues to Experience Decline

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Australia’s residential real estate market continues to struggle, as the average home value fell more than one percent in the last quarter. Prices have dropped more than two percent in the past year, with its major cities experiencing some of the more significant drops.

Home values in the city of Darwin have dropped more than four percent in the past year, making it the city with the largest decline. The cities of Perth, Adelaide, and Canberra have also had strong decreases in housing values in the past year.

Australia had originally avoided the struggles experienced by the rest of the world with respect to the residential housing market. However, they have finally started to experience a downturn in the pricing, as factors such as cost of living increases, and the performance of the dollar have taken their toll.

The overall sales volume in the month of September hit the lowest point that Australia has experienced in more than ten years. With less than five thousand residential real estate properties being sold, the overall volume hit its lowest point since December of 2000. Sales dropped more than five percent in the past month.

Analysts believe that the overall housing market in Australia will continue to decline in the short term, but are uncertain at this point as to how the market will perform overall in the long term. Despite the severe declines, the nation still hasn’t suffered the massive drops as experienced by many other countries around the globe. Analysts remain hopeful that Australia will continue to avoid such decreases, particularly based on the fact that it took quite a bit of time for the nation to be affected by the first global recession.

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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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