Well despite all the prophets of doom spreading their usual wares freely here on ASF, property prices in all Australian capital cities (except Perth) have continued to rise during May this year according to RP Data:
From: http://www.rpdata.com/images/storie...ata_rismark_home_value_index_june_30_2010.pdf
Cheers,
Beej
Well despite all the prophets of doom spreading their usual wares freely here on ASF, property prices in all Australian capital cities (except Perth) have continued to rise during May this year according to RP Data:
From: http://www.rpdata.com/images/storie...ata_rismark_home_value_index_june_30_2010.pdf
Cheers,
Beej
Australian housing market continues to cool in month of May
Did you not notice the title Beej?
Forget the quarter until May. That's like saying the 10 years until May 2010 have shown 100% appreciation. No fool is buying that kind of spin anymore.
What actually counts is May's results when compared to the previous month.
The growth was an anemic 0.5% in May. Care to post a link to an article showing April's numbers, and possibly March's?
Also any guesses as to what June's will be?
According to RP Data’s Tim Lawless, Melbourne’s value growth has been spectacular.
“When you include the strong capital gains recorded prior to the GFC, which was 21 per cent over the 2007 calendar year, Melbourne home values have risen by 51 per cent in less than 3 and a half years. The gap between Melbourne and Sydney dwelling prices is now just 7.2 per cent, which is the narrowest on record.”
... and ....
Other leading indicators suggest that the Australian market remains relatively healthy. The total number of properties available for sale is about the same as last year, with RP Data currently tracking 207,664 properties being advertised for sale – almost identical to the figure from 12 months ago (207,788 homes). The average selling time is now about 39 days for houses and 31 days for units. The average level of vendor discounting remains at about 5.5 per cent suggesting vendors are not having to cut prices dramatically to sell a property.
“The market’s underlying fundamentals are such that any material fall in home values is unlikely. Housing supply remains very low at a time when housing demand is healthy, interest rates appear to be on hold for the foreseeable future, and the Australian economy is performing well compared to all other developed countries”, he said.
Consistent with the moderation in housing market conditions, Rismark’s latest estimate of Australia’s “dwelling priceto-income ratio” remained steady at 4.6 times. This is in line with Rismark’s estimate of the average national dwellingprice-to-income ratio since the end of 2003 of 4.4 times. In a recent speech, the Deputy Governor of the RBA Ric Battellino confirmed this analysis, which is the first to compare all-regions dwelling prices with all-regions incomes, commenting:
New home sales slump, prices stagnate
RP Data says ""With disposable household incomes forecast to increase by only around 5 per cent in 2010, we have long predicted subdued dwelling price performance for this year," he noted in the report."
Really? :headshake
The spruikers are really struggling now..
"There is no sustained upward momentum in new home sales in 2010 because higher interest rates and concerns over the threat of further rate hikes are dampening demand," he noted in the report. "
Is that code for we need more free taxpayer money (FHBG) to prop us up?
and the PM's partner Tim Mathison is a ...wait for it........RE salesman.....
I doubt she will be the PM after the next election....but then again I could not believe the crowd would vote Rudd in....so I could be wrong on the political front
Of course the market is cooling! If you read back to posts from as long as 2 years ago you will find that this has all played out pretty much as I expected back in mid 2008, except that the growth in 2009 was far higher than I had anticipated.
hello,
yes Camkawa, the FHOG should be increased to be exactly the same as stamp duty
ridiculous a person pays 4-5% of purchase price in stamp duty, cut the FHOG and cut the stamp duty
lets see, on the Melb median of 480k stamp duty around 23k, the FHOG at 7k is still way out of whack
and the 7k is holding the market up! hahahahahahaha
23k for buying a secondhand house, zero them both
thankyou
professor robots
and the PM's partner Tim Mathison is a ...wait for it........RE salesman.....
I doubt she will be the PM after the next election....but then again I could not believe the crowd would vote Rudd in....so I could be wrong on the political front
Gillard's partner, Tim Mathieson, is a real-estate agent employed at a company owned by Melbourne developer Albert Dadon, a well-known supporter of Israel, according to the report.
http://www.jpost.com/International/Article.aspx?ID=179898
I am inclined to believe she would be influenced ......
he has not been a hairdresser for years
As you know, household debt has risen significantly faster than household income since the early 1990s.
Most of the rise was due to housing debt, including debt used to fund investment properties.
Therefore sustainable property prices will be unique to Australia then?All countries have experienced rises in household debt ratios over recent decades. Clearly, therefore, the forces that drove the rise in household debt ratios were not unique to Australia. The two biggest contributing factors were financial deregulation and the structural decline in interest rates.
This structural decline in interest rates has facilitated the increase in household debt ratios because it reduced debt-servicing costs (Table 1). Households have therefore found that they can now service more debt than used to be the case.
are Australian households over-geared?
I don’t think it is possible to give simple ‘yes’ or ‘no’ answers to these questions.
However, looking at a broad range of financial data, and considering the fact that the Australian economy and financial system have exhibited a high degree of stability over many years, despite the many global events that have tested their resilience, is, I think, grounds for confidence that the economic and financial structure that has evolved in Australia is sustainable.
hello,
why not get rid of them both? $0 grant $0 stamp duty
Interesting that the ratio of household income to interest payments is missing from that analysis.More from the RBA’s Deputy Governor Ric Battellino
http://www.rba.gov.au/speeches/2010/sp-dg-150610.html.
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