House sales at an all time low

  • December 21, 2012
  • Ayda Shabanzadeh
  • Investment
iStock 000000422765XSmall

A recently released report shows that new house sales have fallen to a 15-year low. The Housing Industry Association new home sales report shows a drop of 5.3 per cent in August, after a 5.6 per cent drop in July, led largely by a “persistently weak” detached house market. The HIA said new house sales fell 5.8 per cent in August, while apartments fell 2.5 per cent.

So what does this mean for you? Well, this combined with the fact that the Reserve Bank cut rates yesterday to 3.25 per cent from 3.5 per cent means that you should think about getting into the property game. When sales are low and interest rates have been cut, it is a great time to be buying property, whether it is for you to live in or you want an investment.

This is especially true when you also consider that rents across the country have gone up quite significantly lately, to the point where in a number of areas it has become cheaper to have a mortgage than it is to rent.

Following an economic crisis there are always new opportunities as the whole landscape has changed, this is one of them. Take advantage of this as it will not last.