http://theage.domain.com.au/auction-market-slow-to-respond-to-rat...

http://theage.domain.com.au/auction-market-slow-to-respond-to-rate-cut-20120505-1y5tg.html

Melbourne’s auction market posted another mediocre performance today despite the sharp cut in the interest rate.

REIV spokesman Robert Larocca says :
‘‘I think there are more factors at play in people’s minds than just interest rates right now,’’ he said. ‘‘We need two things to see the market improve: one, the interest rate cuts, and two, a clear improvement in the economy so people are more confident about their prospects. The interest rate decision is a step in that direction but it doesn’t ensure that it occurs.’’

With PSI (Performance of Services Index) looking really sick and broad based job losses expected to accelerate, it hard to see improvement in the economy and peoples prospects.