Weak demand now the bane of once-storming Aussie housing market | Malay Mail

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BENGALURU, Sept 29 — Australian housing market activity won't recover from the recent slowdown for at least a year as dwindling household incomes and soaring unemployment hammer demand, causing home prices to fall this year and next, a Reuters poll of analysts showed. Now in its first recession...

People walk past a bank advertisement for home mortgages in Sydney February 4, 2014, the indication of a once storming market.. — Reuters pic

That forecast comes despite aggressive monetary policy easing from the Reserve Bank of Australia, which has so far chopped its key interest rate to an all-time low of 0.25 per cent and launched a bond-buying campaign to hold market yields down. “Government support and the deferral of home loan repayments have undoubtedly helped support the market. But with unemployment likely to continue to rise and fiscal stimulus to shrink in Q4, prices are likely to continue to decline.”

Asked which was a greater risk for the Australian housing market over the coming year, all but one of six analysts said a sharp economic slowdown.

 

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