House prices to keep rising for years

[Dowdy]

Hey robots,

Since you're a self proclaimed Professor of Economics at Melbourne University, perhaps you can explain to me what inflation is?

You claim to be king of this thread on several occasions so perhaps the bears can learn something off you.

 

[Bill M]

Time to give an update on what's happening here on the Northern Beaches Sydney. Still very high demand and very low supply, everything is sold in no time. The market is heading upwards all the time.

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With more than two dozen people inspecting property at each open and an army of cashed-up buyers who sold to first home buyers, there is something of a scramble to secure property in the next range and some agents say they virtually have nothing left on their books.

Link to story here.

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Yesterday I went to the Central Coast (about 1 and a half hours north of Sydney) looking for a home to buy. Even up there demand is outstripping supply. There were buyers everywhere and prices have moved upwards from 9 Months ago. A lot of the open for inspections had older couples looking to secure that house (not first home buyers). Display homes the agents were using were sold and they were leasing it back from the buyers so they could continue to use them. Properties are being sold very quickly. My mate who bought up there 9 Months ago came out with us for the day and says prices have moved significantly since he bought. Nothing we saw jumped out and grabbed us, it's a matter of keeping on looking. One thing for sure house prices are rising and with a lot of buyer demand it will continue to do so, no doubt.

 

[robots]

Hey robots,

Since you're a self proclaimed Professor of Economics at Melbourne University, perhaps you can explain to me what inflation is?

You claim to be king of this thread on several occasions so perhaps the bears can learn something off you.

hello,

i have a research paper coming out on inflation in the near future, my team at Melbourne University has just been put together

the general focus is on how inflation has no material affect on people during their working days

thankyou
professor robots

 

[Beej]

Time to give an update on what's happening here on the Northern Beaches Sydney. Still very high demand and very low supply, everything is sold in no time. The market is heading upwards all the time.

--------------
With more than two dozen people inspecting property at each open and an army of cashed-up buyers who sold to first home buyers, there is something of a scramble to secure property in the next range and some agents say they virtually have nothing left on their books.

Link to story here.

-------------

Yesterday I went to the Central Coast (about 1 and a half hours north of Sydney) looking for a home to buy. Even up there demand is outstripping supply. There were buyers everywhere and prices have moved upwards from 9 Months ago. A lot of the open for inspections had older couples looking to secure that house (not first home buyers). Display homes the agents were using were sold and they were leasing it back from the buyers so they could continue to use them. Properties are being sold very quickly. My mate who bought up there 9 Months ago came out with us for the day and says prices have moved significantly since he bought. Nothing we saw jumped out and grabbed us, it's a matter of keeping on looking. One thing for sure house prices are rising and with a lot of buyer demand it will continue to do so, no doubt.

Yep BillM is spot on. To add more to this view, Sydney auction clearance rate was 72% yesterday, 135 sold at auction, median price was $640k. (http://www.homepriceguide.com.au/saturday_auction_results/sydney_domain.pdf). Lot's of $1M+ in there (over 30 = 20%+ of properties sold), and several $2M/$3M and even a $4M sale. It looks to me like the heat is now turning up a bit in the mid range and the top end is moving again - it's definitely not just all about FHBs in Sydney........

PS: This is not OPINION about what might happen in the future, I am simply pointing out information showing what is actually happening right now. Unsurprisingly, what is actually happening is completely different to all the bearish predictions made on this and the other thread up to 1.5 years ago by the same posters that are still here now making the same old predictions, or new posters repeating those tired predictions once again..... the crash is always 6-12 months away it seems!

Cheers,

Beej

 

[robots]

hello,

good morning,

if you in Melbourne today, get on down:

http://www.theage.com.au/national/hiphop-helps-build-bridge-for-citys-newcomers-20090725-dww4.html

some fabulous Australians on the mic, i wonder if they could have an open mic session

thankyou
professor robots

 

[robots]

hello,

REIV jun Q09 results out next saturday, so we hooking up Satanoperca on Sunday at South Melbourne?

thankyou
professor robots

 

[Dowdy]

hello,

i have a research paper coming out on inflation in the near future, my team at Melbourne University has just been put together

the general focus is on how inflation has no material affect on people during their working days

thankyou
professor robots

Perhaps you should work on another paper/ pull another one out of your ass.

90% unemployment in Zimbabwe would make you argument irrelevant

 

[tech/a]

Inflation---what inflation.

 

[robots]

Perhaps you should work on another paper/ pull another one out of your ass.

90% unemployment in Zimbabwe would make you argument irrelevant

hello,

yes and people's wages are those that were present in 1960, its a non-event and my team will be putting together a superb paper in the near future

the university has funded the project, although a bit concerned with my secondhand desk as it has "SK was here" carved into the top

thankyou
professor robots

 

[knocker]

hello,

i have a research paper coming out on inflation in the near future, my team at Melbourne University has just been put together

the general focus is on how inflation has no material affect on people during their working days

thank you
professor robots

I am putting together a paper for my thesis entitled " the effect of psychotic drugs on property speculators". Would you mind if I included you in my survey robots.

Knocker

(Soon to be professor knocker).

 

[robots]

hello,

no worries, its an intense time i would imagine doing a thesis so anything to help

i have been fortunate that Melbourne University (like western Uni) recognised my service to the subject and presented me with an honorary position

goodluck

thankyou
professor robots

 

[knocker]

Thanks champ. Good to see you taking one for the team lol

 

[kincella]

Hi Robots, now I have no idea whether you are joking about your job or not....?
maybe you can send me a PM
Dowdy, there is no need to talk like that...certainly not on a public forum....I dont like feral talk

 

[knocker]

Inflation---what inflation.

Yes and you can buy a pack of lifesavers with that lol

 

[Beej]

I am putting together a paper for my thesis entitled " the effect of psychotic drugs on property speculators". Would you mind if I included you in my survey robots.

Knocker

(Soon to be professor knocker).

Don't you claim to be a property speculator though yourself? Buying up big time o/s right now? So I guess you could write that paper based on personal experience? It certainly explains a lot!

Beej

 

[knocker]

Don't you claim to be a property speculator though yourself? Buying up big time o/s right now? So I guess you could write that paper based on personal experience? It certainly explains a lot!

Beej

Not buying up big time already lol Besides which this thread is about Australia is it not.:

 

[Dowdy]

Dowdy, there is no need to talk like that...certainly not on a public forum....I dont like feral talk

And i don't like phoney claims about degrees. It's long past the stage where it was considered a joke

It's lying as he does he and passed it off as truth.

Any other forum it would be considered trolling.

It's also an insult to anyone who has a economics degree.

If this was a medical forum and i claimed to be a doctor and wasn't, would you tell me to get rid of my bogus claims?

 

[gfresh]

http://www.abc.net.au/news/stories/2009/07/28/2638133.htm

Signs of US recovery ? take it as you will I guess..

Signs of revival in US housing sector

By North America correspondent Lisa Millar and wires

Figures released in the US indicate the housing market may be starting to recover, with new home sales soaring in June.

In an increase that took economists by surprise, the June hike in new home sales was the biggest in more than eight years.

Economists had predicted sales would climb 2.3 per cent, but instead the figures showed an 11 per cent jump for single family homes, the third increase in a row.

The housing crisis in the US has been the focal point of the recession and this increase is being seen as evidence the market might be finally recovering from its worst downturn in decades.

Sales prices fell, however, suggesting builders have been cutting prices to clear inventory.

The median sales price fell to 206,200 from 219,000 a month earlier, and the median length of time homes were on the market was a record 11.8 months.

The number of new homes for sale at the end of June was estimated at 281,000 - a supply of 8.8 months at the current sales rate.

That was down from a glut of 10.2 months in May and 12.4 months in January, when home sales fell to their lowest level since statistics began in 1963.

The report was the latest to suggest the battered housing sector and overall economy may be on the mend after a brutal slump.

Last week, the National Association of Realtors said sales of US existing homes rose for the third consecutive month in June - up 3.6 per cent to a rate of 4.89 million units.

Mixed messages

Economist Michelle Meyer at Barclays Capital said the rise in new home sales was the largest monthly increase since December 2000.

"The normalisation in the new housing market is underway, which is a precondition for new homebuilding," she said.

Others said it was too soon to talk about a recovery.

"Since prices have continued weak, it is hard to call this a signal of a turn higher," said Robert Brusca at FAO Economics.

Patrick Newport, economist at IHS Global Insight, said the report was mixed.

"Although the market for new homes is improving, selling a new home has never been harder," he said.

"The median time that a new home sits on the market before selling rose to an all-time high of 11.8 months. The number is rising because builders must cover their costs, and do not have the option of selling homes at 'fire sale' prices."

 

[Uncle Festivus]

Good news??

Figures released in the US indicate the housing market may be starting to recover, with new home sales soaring in June.

In an increase that took economists by surprise, the June hike in new home sales was the biggest in more than eight years.

Then comes the bad news!

Sales prices fell, however, suggesting builders have been cutting prices to clear inventory.

Still, only 4 more years to clear the backlog?

 

[kincella]

I just love the way you guys keep going on about the US market...where they have in excess of a million surplus houses...and NINJA loans....
in fact I would love for you to go over there and buy some of those cheap houses...you know the ones for $1000, and then pay the govt about $8000 in taxes a year...where the neighbours have ripped out all the copper and anything else thats worth 2 cents...
or the mansions...for 100k's....and loving the neighbourhood's they are in...