Government boost fails to attract buyers

Despite boosts to the First Home Buyer’s grant scheme and recent interest rate cuts, auction clearance rates declined sharply in November 2008. Melbourne suffered the worst with the lowest clearance rate since January 2006. Sydney, Brisbane and Adelaide also suffered falls. Australian Property Monitors senior economist Liam O'Hara suggested that potential buyers were reluctant to take on debt. With the First Home Buyers Grant boost to be reduced in Mid 2009 it’s hoped that the market will significantly improve before June next year.

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