Lenders take a halt as loans and sales fall
Australia’s economy is among the strongest in the world. Having been able to get up amidst all adversities, including the calamities that hit the nation, is a sign of its will power. Recent developments show that Australia is not going to let anything bring its economy down.
However, amidst all efforts of the Australian government to get up and pick up the pieces, certain events have occurred that have posed a problem on the government. Figures show that loans to owners and occupiers have dropped a shocking 5 per cent in January in Victoria alone. It is by far the worst month-to-month decline in over a year.
The Australian Bureau of Statistics noted a 7 per cent fall in the investor financing which has been the lowest recorded since March 2009.
The number of properties sold has also dropped. The fall is even lower than the one recorded in 2008 and 2004 when Australia was greatly affected by the financial crisis. This was according to the Analysts RD Data.
RP Data sees the situation to even get tougher in the months to come. It estimates the number of properties on auction to have risen to twenty per cent compared to last year.
Vendors will also be greatly affected as they will be more pressured to lower their prices given that the supply now is greater than the demand.
Buyers are supposed to have the benefit of having the freedom to pick their choice items. However, money also seems to be difficult to find these days. In fact, people have to avail payday loans from lending companies to help them get buy. An example for this is the payday loan Australia which aims to give financial loans to borrowers who need the extra money.
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Source : http://watoday.domain.com.au/home-investor-centre/brakes-on-as-loans-sales-slump-20110314-1btqb.html
