Investors now the market's best hope

by Mackenzie McCarty29 May 2012

Investors are predicted to be lured to the property market by a slowing rate of house price declines.

According to PRD Nationwide, a quick recovery of the property market to a pre-GFC boom is 'unthinkable', though the rate of decline in values has slowed and may even be stagnant.

The real estate agency said that this is primarily due to what global markets face in the near future.

However, investors may provide increased business for mortgage brokers, as they eye bottom price.

"Investors could now be tempted back into the property market as the rate of decline in values erodes away," PRD Nationwide's Quarterly Economic and Property Report stated.

This perception will only be furthered by the equity markert, which PRD said "remains not only turbulent, but has provided returns inferior to fixed bonds over the past five years".

The report said the property market faces significant challenges ahead.

"The property market continues to contract, as shown by housing finance approval's data, while bank rate increases and a tight fiscal federal budget will likely prevent any substantial green shoots in the market from gaining significant traction," the report said.

"So far unemployment has been fairly contained, but any significant change will hurt the property market."

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  • by Will - Perth 29/05/2012 10:27:51 AM

    This article had me cracking up laughing.Property and stock investors are again pulling away and moving to cash accounts !!

  • by sidbroker 29/05/2012 7:00:08 PM

    There will have to be more homes etc. built and we need them yesterday. However it is not viable for investors while we have Stamp Duty, Landtax. Capitol Gains Tax. coupled with the ship being steered by the geniuses at the RBA,. Give me a break! RBA has too much say and this is not working!! Will we ever get a Govt. that has any smarts at all. How do you expect to have massive income from GST when they are hobbling the Nation with the above taxes draconian legilation that is stiffling progress and business at all fronts. Its not rocket science stop with the control freak mentality at the top.