“It seems quite plausible to me that house prices will continue to fall for all of the next year into 2020.”
No surprise to realise housing prices in the big cities are falling. Found an excellent report on ABC which analyses where prices are collapsing and looks at historical comparisons.
House of cards
By Inga Ting, Geoff Thompson and Alex McDonald
7.30
Updated 17 Dec 2018, 10:12am
Published 10 Dec 2018, 6:02am
The tide is turning on Australia’s $7.6-trillion property market.
Home prices in more than four out of five council areas have reached their peak and are sliding towards an unknown nadir, according to the latest figures from property market analyst CoreLogic.
As the slump moves into its second year with little or no prospect of rebound, the downturn in capital city property markets threatens to drag down the rest of the economy.
And with a mixed outlook for the global economy, doubts are surfacing about where Australia is going to find the fuel to extend its near-record run of 27 years of unbroken economic growth.
“The likelihood of Australia facing the longest housing downturn in history has increased,” says UBS chief economist George Tharenou.
“It seems quite plausible to me that house prices will continue to fall for all of the next year into 2020.”
https://www.abc.net.au/news/2018-12...as-property-downturn-hit-your-suburb/10588960
So why is it bad news that housing is becoming more affordable ?
Incentives for investors distorted the market in the first place, now that investors are pulling out prices will go to a level that the average income earners will be able to afford.
No surprise to realise housing prices in the big cities are falling. Found an excellent report on ABC which analyses where prices are collapsing and looks at historical comparisons.
House of cards
By Inga Ting, Geoff Thompson and Alex McDonald
7.30
Updated 17 Dec 2018, 10:12am
Published 10 Dec 2018, 6:02am
The tide is turning on Australia’s $7.6-trillion property market.
Home prices in more than four out of five council areas have reached their peak and are sliding towards an unknown nadir, according to the latest figures from property market analyst CoreLogic.
As the slump moves into its second year with little or no prospect of rebound, the downturn in capital city property markets threatens to drag down the rest of the economy.
And with a mixed outlook for the global economy, doubts are surfacing about where Australia is going to find the fuel to extend its near-record run of 27 years of unbroken economic growth.
“The likelihood of Australia facing the longest housing downturn in history has increased,” says UBS chief economist George Tharenou.
“It seems quite plausible to me that house prices will continue to fall for all of the next year into 2020.”
https://www.abc.net.au/news/2018-12...as-property-downturn-hit-your-suburb/10588960
easy credit and greed, now that greed is being punished.
So why is it bad news that housing is becoming more affordable ?
Incentives for investors distorted the market in the first place, now that investors are pulling out prices will go to a level that the average income earners will be able to afford.
So why is it bad news that housing is becoming more affordable ?
Incentives for investors distorted the market in the first place, now that investors are pulling out prices will go to a level that the average income earners will be able to afford.
By all that were driven by FOMO, whatever the reason, nobody pushed anyone's arm up their back to buy into the bubble.Greed by whom ?
Life is about choices and consequences, we are trying to find ways of encouraging people to make choices, without explaining there are consequences.
Just another way of dumbing down people.
That's why people now, always blame someone else, for their poor choices.
No consumption and spending beyond the absolute minimum; capital gains and negative gearing will mean little to no tax for most Aussies for years to come.
There you go, all the people who forced the person, into taking out a loan.Interesting observation. I would have really liked there to have been more consequences around when financial institutions were throwing money at people to buy property because it would never go down.
I wouldn't mind some consequences for the myriad property gurus who created the ponzi scheme in the first place.
And at the start of the line there are the political parties who introduced capital gains exemptions and encouraged and took part in the property speculation game. Any consequences for them?
We will see how that works out, the figures should be coming through soon.Cheaper houses, lower mortgage repayments, more disposable income , increased consumer spending, more GST revenue ?
Cheaper houses, lower mortgage repayments, more disposable income , increased consumer spending, more GST revenue ?
Yes, true. But that's reconstruction after the demolition. The phase we're in right now is the demo.
Looking around where my folks live, forget about where I live, it's a few hundreds K more... working class area; basically 50+ year old houses, mostly cladding/fibro and brick veneer 3-bedder... Still going for some $700k. The cheaper $650 are fibros you need to knock down.
Man, it's a big ask on the budget to ask working people to pay close to a million if they want a liveable house.
Don't worry, it has a way to go yet.
Friends of ours, have a unit they paid $140k, 15years ago, the one next door just went under offer $180K.
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