We continue to save rather then spend

The end of the financial year is looming and from the endless sale catalogues and special deals being advertised it appears that retailers believe the 30th June is the perfect time to get out and start spending. Or at least they’re hoping consumers will start spending!  From all reports it’s been a very tough year so far for the retail sector.

Is it the same for the property market? Yes I think it is.  The much lauded ‘mining boom’ simply isn’t resonating through the rest of the economy.  We continue to save rather than spend even when faced with great deals…and without doubt there are definitely some great property deals around at the moment. Bascially I think we’re nervous.  Nervous about the economy, nervous about job security, nervous about short-term budgeting and long-term value.

As I’ve said in recent weeks we are selling property but buyers are moving with more caution than I’ve ever seen before.  And to be honest I think it could get worse before it gets better, especially because most commentators predict another interest rate rise which will further spook investors.But ever the optimist I do believe it will get better.  It just might take a few months and some slightly warmer weather.