http://www.smh.com.au/business/new-home-sales-drop-for-fourth-month-20100929-15wji.html
New home sales drop for fourth month
September 29, 2010 - 1:28PM
Sales of new homes have fallen for the fourth month in a row, prompting a peak housing construction organisation to warn of the risk to the industry if interest rates are pushed up too soon.
Hello,
hehehehe, spruikers, yeah i agree WayneL some posters
goldmans sach says overvalued, so come buy into one of our managed funds and we give you 5.5% p/a over the next 10yrs with no obligation to ever return your money
hahahahahahahahahaahahahhahhhhhhahahaaaaaaahhhaaaaaaahhahhahahhhhhhahhhhhhhhahhhhaaaaaaaaaahahahahaha
got any hard disappointments on the property front gloomers?
thankyou
robots
***wonders the mental age of some of the posters in this thread.
Hello,
no worries,
* property prices well higher then PRE-GFC after the biggest financial meltdown the world has seen since 1929
* new home sales drop for the fourth month
thankyou
professor robots
Credit ratings agency Fitch says it will stress-test the impact of steeper home prices on Australian banks' debt, sending shudders through financial stocks.
Fitch this afternoon said it’s probing the potential impact of a spike in mortgage defaults or drop in house prices on the portfolio of Australian residential mortgage-backed securities and banks it rates.
"Over the last few months, Fitch has received numerous enquiries as to the sustainability of Australian residential property prices and the possible impacts of a correction,” said Ben McCarthy, managing director for Australia.
“While over the short-to-medium term, a downturn is not Fitch's central expectation, the agency is performing its stress test exercise on ratings impact under the hypothesis of an imminent housing market correction.”
Australia’s capital city home prices have risen 41 per cent since June 2006, on official Australian Bureau of Statistics data. Over the same period prices plunged in the US, UK, Ireland and Spain.
An estimated 60 per cent of Australian banks’ loan books is secured by residential property, leading pundits and international investors to question the sustainability of house prices.
The announcement this afternoon put pressure on Australian bank stocks, according to CMC Markets.
“The banks seemed to be weighed upon by this news, with all four in the red following being in positive territory in the morning," said CMC Markets institutional equities dealer David Barrett-Lennard.
Bank stocks closed down 0.8 per cent for the day, as the benchmark S&P/ASX 200 index dropped 0.5 per cent, or 24.8 points, to 4645.
"A housing bubble is the one overhang of the Australian economy, with proponents arguing that with Australian banks having 60 per cent of their loan books secured by residential property, the entire Australian economy is very highly leveraged to a domestic asset bubble," he said.
There is growing wariness internationally about Australian house prices.
Several months ago The Economist published a report on the local real estate market saying prices were the most overvalued in the world. And investment bank Goldman Sachs last week said Australian house prices were overvalued by up to 35 per cent.
The Fitch report on the outcome of its stress-test analysis is due later this year.
I've been thinking that perhaps the bubble wont burst, that perhaps some contrarian thinking mite be required :dunno: Can the bubble simply deflate over time by levelling off...i mean if a trend line shifts sideways and simply waves along going sideways (over time) then the bubble is no longer.
Perhaps the combination of the mining boom, china, our strong domestic economy, our dollar, immigration hangover, under supply of new house starts etc will be enough to stop the bubble popping (falling of a cliff ) and a couple/few years of general sideways movement in house prices will follow.
Just a thought.
I thought that had already been happening in certain areas.I've been thinking that perhaps the bubble wont burst, that perhaps some contrarian thinking mite be required :dunno: Can the bubble simply deflate over time by levelling off...i mean if a trend line shifts sideways and simply waves along going sideways (over time) then the bubble is no longer.
Perhaps the combination of the mining boom, china, our strong domestic economy, our dollar, immigration hangover, under supply of new house starts etc will be enough to stop the bubble popping (falling of a cliff ) and a couple/few years of general sideways movement in house prices will follow.
***wonders the mental age of some of the posters in this thread.
Building approvals drop prompts rates warning
The Master Builders Association says the latest housing figures send a clear warning to the Reserve Bank of Australia (RBA) to not raise interest rates.
http://www.abc.net.au/news/stories/2010/09/30/3026065.htm?section=business
I've been thinking that perhaps the bubble wont burst, that perhaps some contrarian thinking mite be required :dunno: Can the bubble simply deflate over time by levelling off...i mean if a trend line shifts sideways and simply waves along going sideways (over time) then the bubble is no longer.
Perhaps the combination of the mining boom, china, our strong domestic economy, our dollar, immigration hangover, under supply of new house starts etc will be enough to stop the bubble popping (falling of a cliff ) and a couple/few years of general sideways movement in house prices will follow.
Just a thought.
In Miami, Ron Shuffield, president of Esslinger-Wooten-Maxwell Realtors, predicted that a limited supply of land coupled with demand from baby boomers and foreigners would prolong the boom indefinitely.
"South Florida," he said, "is working off of a totally new economic model than any of us have ever experienced in the past" according to a realtor who predicted that a land shortage will support higher prices indefinitely."
New York Times. March 29, 2005
With non-recourse loans and abysmal lending standards, it was never going to end any other way. Australia is well ahead on both counts.Now Florida has tent cities to cope with all the homeless, and Florida is a lot bigger than just the Miami-Dade area. At least our mate Ron Shuffield was 100% right about the "new economic model than any of us have ever experienced in the past".
hello,
further on the US:
abysmal everything over in that joint, crack, 9mm stuffed down every cats pocket, fat asses galore, oh yeah lets invade another country because they have weapons of mass destruction and Saddam in charge of a powerful army
look out, saddam was found in a hole in the ground, the joints pathetic and surely the mods need to start deleting any articles which are posted regarding that place
who gives a stuff about florida, "the future of australian property prices"
thankyou
professor robots
Wow, you seem to know so much about the USA. I find that comment interesting. Have you ever been there?
Wow, you seem to know so much about the USA. I find that comment interesting. Have you ever been there?
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