Posted on Monday, September 12th, 2011 in by Matt Garmony
Consumer and business confidence is growing increasingly fearful the eurozone cannot deal with the debt crisis with Greece’s potential debt default and the fragility of the European banks being thinly capitalised. Uncertainty of a recovery is the US economy is also causing global concerns.
Australia’s unemployment rate is slowly increasing, following recently published data, which may cause the Reserve Bank of Australia (RBA) to cut interest rates by the end of the year. Although this may improve the affordability of home ownership and improve business funding slightly, we are of the opinion the global financial and local unemployment concerns may not improve business and consumer confidence and therefore subdued property market conditions will continue in the short to medium term.