Despite the RBA’s decision to keep the cash rate on hold yesterday, the threat of higher rates is stopping Australians from purchasing property.
According to a new survey conducted by Homeloans Ltd, 45 per cent of Australian property buyers said they would delay purchasing a property this year.
The Homeloans Home Buyer Barometer Q1 2011, which surveyed 2000 Australian first home buyers, homeowners and investors, found just six per cent of those planning to buy a property this year would do so within the next six months, while 74 per cent have reconsidered how much they are able to spend.
Homeloans’ chairman and chief executive officer Tim Holmes said Australians continue to take a cautious approach to purchasing property.
“In my experience, such overarching caution is unprecedented outside of an economic downturn,” Holmes says. “But it’s a complex economic situation at present.
“There are now so many variables which have a profound effect on the Australian economy and consumer confidence, such as the recent floods and the just-announced flood levy tax. These obviously create some uncertainty.
“Although the RBA obviously made the decision to keep official interest rates on hold today, it’s difficult to predict what it will do in months to come, particularly in light of the recent disasters. However, it is clear that concerns about finances are keeping Australians on their toes.”