Housing market stalls

It seems that home owner's grants are not enough to prompt buyers, as Victoria's real estate market has dropped to its lowest point in more than four years.

There were 807 auctions held this Saturday, of which one of two homes failed to sell under the hammer.

People still seem concerned about how the economic crisis will affect Australia and are still assessing their options, and are unloading debt. Buyers are a little slower in parting with their money than they were in the past.

Even though experts predict further interest rate cuts this week, which should boost sales, some real estate agents stated that would be buyers were still happy to sit and wait because they believe they have the upper hand.

Scott Mc Elroy director of Hocking Stuart stated that their company had 110 properties on auction last Saturday, of which 53 were sold under the hammer.

In comparison, to December last year the clearance rate was 78 per cent, with 952 properties generating sales worth $502.18 million. Results in all price ranges have seen the rate flat line at 54 per cent this month, following a week- long dip to 53 per cent on November 1.

Home buyers need to remember that it's a good time to upgrade a property because if the value of your house decreases, then it is the same story for the other property owners. Interest rates are down, and are expected to be cut again this week.

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Published on December 12-st, 2008 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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