Experts are hopeful that interest cuts will restore faith to a cautious market in 2012.
This weekend marks the start of Sydney's auction season, and the new property year has brought with it a wave of cautious optimism from both buyers and sellers.
About 80 auctions are scheduled across the city, compared with 118 for the equivalent weekend last year. The drop in early auction listings is perhaps due to the gloomy end to last year, which was plagued by low clearance rates. Only about half were selling on auction day.
Many have no doubt decided to hold off listing to see what the new property year brings.
Yet there have been some encouraging signs for owners considering putting their house on the market. March is looking like a big month for auctions, for those trying to squeeze in their marketing campaigns ahead of this year's early Easter, on April 6.
If buyers have heard the reports of impending doom for Australia's property market - such as that from the American analyst Jordan Wirsz, who thinks prices will plummet 60 per cent in five years - they're shrugging them off (and Australian analysts have dismissed them).