The Reserve Bank says housing prices may fall further and believes it is risky to assume they won't.
"It is a very dangerous idea to think that dwelling prices cannot fall," said RBA governor Glenn Stevens said in a speech today. "They can, and they have."
"We should never say a crash couldn't happen here, and the Reserve Bank continues to monitor property markets and the performance of mortgages quite closely," said Mr Stevens.
Home prices in Australia have fallen 5 to 10 per cent from their peak, compared with 15-20 per cent in the UK and 30 per cent in the US, according to the RBA.
Surprised nobody has mentioned this but all day media have been slamming that mining boom will be over in two years, unemployment up, dollar down.... In do recall some indicators being mentiones
Went to an open house on the weekend... bit like that really.
Was the only one there on a property for the kids which was reduced from $650000 to $540000.
Perhaps the calm before a storm again?
Perhaps not much is happening, because not much is happening!
"House prices can't fall a 'dangerous idea':RBA"
http://www.watoday.com.au/business/house-prices-cant-fall-a-dangerous-idea-rba-20120724-22m9v.html
It has to be said that the housing market bubble, if that's what it is, seems to be taking quite a long time to pop – if that's what it is going to do. The ingredients we would look for as signalling an imminent crash seem, if anything, less in evidence now than five years ago.
Conclusion
Most Australians I encounter who return from overseas remark how good it is to be living and working here. We are indeed ‘lucky’ in so many ways, relative economic stability being only one of them.
But what matters more is what we do with what we have. Not every good aspect about recent performance is down to luck. By the same token there are things we can do to improve our prospects – or, if you will, to make a bit of our own future luck. Some of the adjustments we have been seeing, as awkward as they might seem, are actually strengthening resilience to possible future shocks. Higher – more normal – rates of household saving, a more sober attitude towards debt, a re-orientation of banks' funding, and a period of dwelling prices not moving much, come into this category.
The years ahead will no doubt challenge us in various ways, including in ways we cannot predict. But what's new about that? Even if the pessimists turn out to be right on one or more counts, it doesn't follow that we would be unable to cope. Acting sensibly, with a long-term focus, has as good a chance as ever of seeing us through whatever comes our way.
classic moments from the master and lord bernanke.. the ultimate bubble denier and whom got it so so wrong on every count every step of the way..
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Forget Bernanke for the moment, we've got our own Prince of the RBA talking about rainbows and daffodils. http://smh.domain.com.au/real-estat...ces-of-homes-not-too-high-20120724-22nhe.html
I say bring on the crash.... little pain.... for a better future for the entire country.
I am 23 and have been looking around for a house to buy, and god am I sick of real estate agents telling me it's a 'Buyers market' .. I'll tell you when it's a buyers market, k mate? Piss off and let me looka t the home. Also if you see an advertised price, you might as well take off 30% because that's all I hear anyone discussing paying, and even they're holding onto their cash tighly.
Sadly you're in the reasonable minority. The majority wants their cake to eat.
I went to one of those group auctions at a hotel with a mate last week. All the properties were in the Dandenong area, which was supposed to be a boom suburb with one of the fastest growing property prices. Of the six houses five got passed in and most didn't make it past 300k.
you mean like at most auctions, it's always been like that with auctions, even in the boom times.
looks pretty **** over there in the east, the west is only stagnating, prices won't rise but rent is through the roof, yields are coming back to what they were in the early 00's.
property market over here is going to do a steady rise like it did from the late 80's-90's.
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