House prices to stagnate for 'years'

[robots]

hello,

the party aint over, 16mths on for this thread and guess what, no correction

still waiting

look forward to the next month

thankyou

robots

 

[wayneL]

hello,

the party aint over, 16mths on for this thread and guess what, no correction

still waiting

look forward to the next month

thankyou

robots

Nowhere? Ever heard of Sydney where prices are down 13% in nominal terms and far more in real terms?

prices have reached what looks like a permanently high plateau

LOL

 

[Kauri]

House prices to stagnate for 'years' ...

Wish they would... have all but finished renovating a house, putting on a room etc, am now told that people want to buy it at the current inflated rate... to knock down the house and redevelop the 1/4 acre into units!! Would have made the same money sitting on it and doing nothing!!!!!!!

 

[wayneL]

Robots,

As a point of order:

RE does not "crash", it takes some time to play out. Talk to you in 5 years

 

[Kauri]

Maybe rents need to increase 30% to bring the ratio of house prices to rents (PE) back to its long term average, and while we are at it how about increasing wages by 25% to bring the house price/wages ratio back in line... :

 

[robots]

hello

no problem will even send you my address if you like and you can send me a postcard

thankyou

robots

 

[Smurf1976]

hello,

the party aint over, 16mths on for this thread and guess what, no correction

In some places maybe but it is a FACT that in some other locations there HAVE been house price falls in nominal terms.

If you compare instead to cash in the bank earning interest or real prices after adjusting for inflation then those falls are reasonably common outside the upper end of the market.

 

[numbercruncher]

Yep i bet the majority of people who have bought a house in the last 12 months or so would have a paper loss if they take in costs/dutys/realty fees.

 

[stargazer]

Perhaps not Numbercruncher.

heres some interesting real figures

Bought 280000 feb 2006

sold 395000 march 2007

half profit subject to CGT
fees etc

over 70000 profit in 12 months.

This is Adelaide market which has been stable in my opinion.

Cheers
SG

 

[Mousie]

Perhaps not Numbercruncher.

heres some interesting real figures

Bought 280000 feb 2006

sold 395000 march 2007

half profit subject to CGT
fees etc

over 70000 profit in 12 months.

This is Adelaide market which has been stable in my opinion.

Cheers
SG

If this is not in Adelaide itself, care to name the suburb stargazer?

 

[crash82au]

stargazer its easy to have a specific sample of someone profiting from real estate in the last 12 months. I live less than 25kms from the gold coast where people have made 100's of k's on properties bought within the last 6 months. I guess its a bit like picking the right stock before it shoots through the roof or being in the right place at the right time. I wouldn't imagine a property going down within the last 12 months but I think investors that have bought in that time frame are looking for a return over a 5 year period IMHO of course.

 

[stargazer]

Hi

Mousie
Yes it is in Adelaide itself. The suburb is Trinity Gardens.

Crash82au
I understand what you are saying Crash82au no argument from me. Although some areas have in fact gone down.

I was just pointing out its possible to make a few $$$.

You can still make a go of it if you pick well enough. A good street and a good suburb within 10k of the CBD and not the best house.

Cheers
SG

 

[numbercruncher]

Yes i understand there are exceptions to the rule.

The Key words in my observation are " Majority of People".

I read the _average_ Melbourne Home has risen 5pc in the last 12months, that doesnt even cover the Interest bill let alone, Stamp Dutys, Insurances, Rates, and Realestate fees if one was to sell.

 

[wayneL]

House prices fall by over £4,500 in February - NAEA

The National Association of Estate Agents (NAEA) has released figures from its latest housing market survey, revealing that the residential housing market has begun to feel the full effects of the interest rate rises seen in the past few months.

* AVERAGE ASKING PRICE FEBRUARY 2007 £213,259
* AVERAGE ASKING PRICE JANUARY 2007 £217,955

http://firstrung.co.uk/articles.asp?pageid=NEWS&articlekey=4383&cat=44-0-0

 

[nizar]

Wayne,

I dont think 2 months is enough to develop a trend and to conclude that the housing market is falling.

But yeh it probably sells newspapers, kinda like those "analysts" comparing the stockmarket now to 1987 pre-crash.

 

[theasxgorilla]

Wayne,

I dont think 2 months is enough to develop a trend and to conclude that the housing market is falling.

But yeh it probably sells newspapers, kinda like those "analysts" comparing the stockmarket now to 1987 pre-crash.

Nizar, you are indeed a wise young man. This is exactly how such propaganda should be viewed...until we have a a reason to know otherwise.

 

[theasxgorilla]

Yes i understand there are exceptions to the rule.

The Key words in my observation are " Majority of People".

I read the _average_ Melbourne Home has risen 5pc in the last 12months, that doesnt even cover the Interest bill let alone, Stamp Dutys, Insurances, Rates, and Realestate fees if one was to sell.

Indeed I hope there are exceptions to the rule...the opposite of that was called communism, or socialism, or some such.

Let me ask you a question numbercruncher...are you an average person? If so then what you read is true, for you. If you choose to be something different then it might help you to speak with people who know better.

 

[theasxgorilla]

House prices to stagnate for 'years' ...

Wish they would... have all but finished renovating a house, putting on a room etc, am now told that people want to buy it at the current inflated rate... to knock down the house and redevelop the 1/4 acre into units!! Would have made the same money sitting on it and doing nothing!!!!!!!

That's alright...thats "blue-sky upside potential sentiment" talking. YOU can also redevelop, IF/WHEN you choose. And in the meantime you have a higher standard of living or a place that will fetch higher rent. You have a valueable asset with value that you created. WHAT IF the market did not continue to boom and there were no developers to sell to? If you are in a good suburb then by renovating you've hedged your bets nicely.

I've been in a similar situation. Put in heart and soul only to have people poking around, prepared to give you your money, so they can knock it down!

C'est la vie

 

[nioka]

House prices fall by over £4,500 in February - NAEA

The quality and type of homes sold or listed during any month is bound to change and , if the quality fell, the average price could fall even if the market was rising. Remember real estate agents can be like used car salesmen and ramping and downramping is not restricted to the stockmarket.

 

[wayneL]

Nioka,

Anecdotally, London is still hot, supported by foreign money, but the some parts of the country are definately cooling/dropping.

Not a trend yet. nut all trends start with the bend at the end of the previous trend.

ASXGorilla,

Hilarious! Rises are to be immediately believed, yet reports of falls are propaganda. The report came from the NAEA ffs.