Low confidence undermining a market of opportunities

By Terry Ryder, 23rd August 2012

The so-called Spring selling season will be subdued this year, with buyer confidence low amid concerns about job security, according to the Real Estate Buyer’s Agents Association of Australia (REBAA).

It says historically low interest rates and conservative prices with be over-ridden by buyer caution.

REBAA spokesperson Byron Rose says, quite correctly, that buyer confidence is the big issue affecting the market and two recent interest rate cuts will not guarantee a flurry of buyers.

Rose says this should be a great time to buy with prices and interest rates low. I would add that there is also the background of solid economic growth, low unemployment and steady incomes growth.

“But there are a lot of buyers out there who have been in their jobs for 10 years and, with unemployment tipped to rise, they’re worried if they will have a job tomorrow,” Roses says. “Many of them are sitting tight and not upgrading, preferring to avoid the risk of increased debt.”

The flipside is that people who feel secure in their job are well-placed to buy well. Rose says cooler prices and high rents make it the ideal time for property investors who have the money to buy now.

Terry Ryder

Terry is the owner and creator of hotspotting.com.au, which provides information to property investors on how to identify emerging markets before they’re common knowledge.

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