The global financial crisis has deeply affected the country of Australia, with home loans falling at its weakest since the mid-1890s. In January 2019, the loans slowly crept up to 0.2 per cent, the lowest level recorded since July of 1984, reports Bloomberg.
The once thriving housing market remains on unstable soil. Reuters report that with the continued decline of housing conditions on the market, the country can foresee a stable decrease in its housing sales as well. While Reuters state that home prices have greatly increased in the past five years, particularly doubling in Sydney and Melbourne, the statistics have fallen to more than 8 per cent. To counter these debilitating conditions, reductions and discounts will be increased in order for property owners to sell their houses.
Apart from the drop in the housing market’s prices, Bloomberg also notes that there has been a drop in the citizen’s personal purchases credit, reaching up to 2.8 per cent in 2018. Even rental homes and apartments were not spared. The data from the Reserve Bank of Australia showed that patronage of rentals also decreased, falling for the first time in 12 years.
The Reserve Bank of Australia (RBA), which has been keeping a relatively low-interest rate of 1.5% for the past 2 and a half years, has been keeping up this practice to help boost economic growth and development in the country.
Despite the lack of home buyers, the RBA is confident that through its initiative, properties in the country will become more affordable and appealing to the buyers.