One of the problems affecting the Australian real estate sector at present is the oversupply of homes for sale, one expert has claimed.

In an interview with News.com.au, managing director of SQM Research Louis Christopher was not optimistic about the outlook for the industry.

"The worst is still in front of us. There is a huge overhang of stock for the market to work through and it is going to get worse before it gets better," he asserted.

Mr Christopher suggested that further cuts to interest rates are needed if the country's property market is to receive the boost it requires.

However, he added that the economic crisis in the eurozone could have a significant effect on Australia's real estate sector.

He made a similar point when speaking to Smart Company earlier this month, noting that the nation's banking industry has exposure to Europe, which may hold back any recovery if the debt crisis overseas worsens.
 

{loadposition user38} source: http://www.propertyshowrooms.com/australia/property/news/australia-facing-oversupply-housing_311780.html