Fear of unemployment keeps many buyers waiting on sideline

While the government's first home owner grants are a great incentive, fear of unemployment may be holding first home buyers back from purchasing, according to Housing Industry of Australia chief economist Harley Dale. Mr Dale expects that there will be a further stimulus package from the government to help motivate first home buyers into action. Although first home buyers are lacking confidence in job security, in an address to 400 housing industry representatives, Mr Dale said that with rising unemployment the housing industry should still grow, if it peaked at about 6 percent. Overall, the housing industry needs to see first home buyers purchasing first homes rather than holding back out of fear and lack of confidence, according to Mr Dale, the fate of the economy over the next 12 months is riding on it.

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