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It sounded like it was implied as median house prices are being discussed in conjunction with median salary and no proceeds of sale (released equity) used to finance.
It sounded like it was implied as median house prices are being discussed in conjunction with median salary and no proceeds of sale (released equity) used to finance.I made no mention of the FHB market. It was a simple observation using the graph.
When buying off the plan turns out to have an unplanned downside MARIKA DOBBIN
Beware the many pitfalls that come with purchasing property before it is built.
YOU'D never buy a pair of expensive jeans without trying them on first. After all, the cut could be unflattering and sizes are not what they used to be.
But somehow, property investors feel comfortable risking a lot more than the cost of designer clothes when they buy an apartment without having stepped inside.
The future of Australian property prices
Australia does not have a surplus of supply in housing.
You wont be seeing a glut in our lifetime.
Is supply/demand related to population or credit though?
I too think that if we have increasing demand through population vs restricted supply that makes sense.
But there is a good argument that that doesn't matter on a leveraged game, which new property property is. The deciding factor is credit supply.
Something that may not come into most thinking? (See discussion about the colour of swans or something like that)
How does an increase in approvals relate to an increase in supply.
Increase in interest rates will dampen demand and price rises.
Increase in approvals for builds would mean an increase in supply. Whether this supply will meet demand I did not say, just we will have to what until later in the year.
Credit is the key to house prices, but my opinion may be bias.
Cheers
Show me a graph where interest rate have risen and it's lead to a price rise in houses?
At a guess from early 2002 to 2008
Increase in interest rates will dampen demand and price rises.
Credit is the key to house prices, but my opinion may be bias.
Cheers
If we get a good dose of inflation in the future you dont want to be a renter holding cash waiting for housing to fall through the floor.
Written by Tim Lawless is the Director of Property Research at RP Data. No vested interest in manipulating stats possible with RPdata.I know it's looking in the rear-view mirror, but here is an interesting article summarising the performance of the residential housing market in Australia over the past decade, inlcuding price and volume stats: http://www.smartcompany.com.au/prop...-property-market-s-last-decade-in-review.html
They don’t need a gun, people are by nature greedy, they, the masses will take the maximum they can get as a rough generalisation. Remove easy and cheap credit and see how prices hold old.On this - credit is a *factor* yes, but without the underlying demand available credit will not be used up - no one holds a gun to people's heads and forces them to borrow as much as they possibly can to buy a house.
Yet on Wednesday one of the unpalatable and less obvious side-effects of Australia's inflating house prices - now deemed by the Economist magazine to be overvalued by 50 per cent - became clearer. The rise in the number of Australian households who are in so much difficulty with their mortgage repayments that they are facing selling up - or being sold up - is continuing its ascent beyond the 200,000 mark reached in November. By this year's end, some 270,000 Australian households will be in severe mortgage stress.
Defaults on mortgage repayments will rise to 35,500 by December - considerably above the present yearly total of about 28,000 households.
All in all, the report produced by the Sydney consultants Fujitsu predicts that by the end of this year some 637,000 Australian households will be under some form of mortgage stress.
No one knows how Australia's housing asset bubble will end. But new American research points to an unexpected and unnerving phenomenon for banks caused by a wave of more belligerent borrowers caught in a property bubble burst.
He might have lost the fight but not the war.
It is conceivable that prices could fall up to 40% given their historic rise last year and the momentum to push them higher this year.
So at the end of the year, if they rose 10% a fall of 30-40% would only put prices back to 2007-2008 levels. No biggy really.
Cheers
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