Sunday, 27 May 2012

Home buyers more cautious


Canberra property sales have slowed significantly over the past two months as buyers tread more cautiously, according to Active Property Sales Executive Michael Searle.

Economic uncertainty and the impending introduction of a carbon tax are believed to be among the contributing factors.

There has also been a surge in the number of new properties hitting the market, which in turn has placed pressure on the sale of established homes.

There are hopes of another interest rate cut to stimulate the property market over the coming months, but in the meantime homeowners are reminded property is a long-term investment.

“There’s local uncertainly and global uncertainty and it’s been a year of people sitting back on the fence,” said Mr Searle.

“Once the supply evens back out we’ll return to a normal property cycle.”

More positively, property priced according to the market is still moving “fairly quickly”, with entry level housing ($350,000 - $400,000) in popular demand among home buyers.

“Even though things have stabilised in the market, rest assured the fundamentals in property and what it has to offer can be demonstrated on a national scale whereby Canberra is still deemed a safe haven for property investment and high rental returns.”

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