Australia’s market not expected to recover in 2007

Property analysts in Australia have said they do not believe that the national housing market will see a recovery this year. Home buyers and investors alike have been troubled by the three interest rate rises which occurred last year and the market for properties and real estate is not expected to recover for at least a year.

Although property is still fairly high, it means there will be some bargains to be picked up this year. In the long term, Australia could be a fantastic opportunity for investment, as long as you are prepared to hold onto your property until the market recovers and begines to bounce back. With the gap between average disposable income and required income to buy a first home increasing steadily, the rental market is booming, again an excellent sign for investors.

Perth and Melbourne are two cities where first time buyers are struggling to meet the mortgage requirements for a house meaning that they are having to rent. For those who have already bought, any further rate increases could see the mortgages pushed beyond their means meaning even more property may be available on the market in the next few months.

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