First Homebuyer Caution holds back Economy

by Joy Manginsay 21. November 2011 18:16

According to a press release from the Mortgage and Finance Association of Australia, “First time home buyers have little confidence in the Australian Economy, as they baulk at property purchases and hoard their cash.”  We all know that house prices in Australia continue to fall and Reserve Bank of Australia has conceded the Australian Economy is no longer as robust because the official cash rate is 4.5%. There are several possible reasons why housing market strikes; 72.1% worried about the level of debt home ownership would require, 44% cited were delaying purchasing a first home due to economic conditions and lastly 20.5% of first time buyers believe property prices are too high. The RBA has confirmed last November 1, 2011 the economy is weak. The QLD building boost isn’t working, lowering interest rate isn't going to work and support for the housing market in a major property. Some home buyers are returning to the market in droves. Investors and businessmen hope that first homebuyers will change their mind to enter and to invest the market to boost the economy.

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