Australian property market flat, with gloomy outlook says report

The current outlook that Australian housing real estate will continue to lose is impacting the market, according to a recent survey.

With key indicators showing buyer reluctance on the rise, the survey concluded this sentiment is reflected in price expectations. Nearly half of respondents indicated they thought prices would fall further over the next quarter.

This follows on from other reports pointing to falling house prices in most capital, with some experts forecasting prices will fall further. Running against that trend is the Reserve Bank's interest rate cut earlier this month that most banks passed on in full. This, combined with falling house prices is expected to generate renewed activity.

Other research suggests more first time buyers are likely to come into the market. Cuts to the first home owners grant and other incentives had caused first time buyers to desert in droves. But a housing outlook report from QBE LMI suggests that they are coming back.

Statistics for the first six months of 2011 indicate that although first home buyer loans declined year on year, the rate of decline has slowed. Loans to first time buyers in the June quarter were only 2% below the same quarter the year before.

So a flat buyers market may be encouraging some first home owners back into the market. With the current outlook for continued falling property prices, all this doom and gloom may spell opportunity for others also.