Rising inflation would also feed into deposit rates and ultimately bond yields thereby demanding a greater yield from other investments.
This could initially trigger a correction in other asset classes including property.
It would but that's not now.I would agree this is a possibility, however, in this scenario wouldn't it scream buying opportunity to you if it happened???
It would but that's not now.
Is this the smart money starting to head for the exits ?
"A RECORD 2560 auction listings this month will test the resilience of the Sydney residential market.
It is well above the 1700 May auction average of the past five years and the previous record of 2160 in May 2002, according to Australian Property Monitors."
http://www.smh.com.au/business/reco...s-will-test-anxious-agents-20100430-tza0.html
This is shaping up as the busiest May for auctions on record. In the past 4 years Melbourne has averaged around 560 auctions a weekend in May compared to 800 this year.
The auction market has recorded a reasonably strong result from the 775 auctions held today with a clearance rate of 82 per cent being recorded.
pre-occupied with sorting things out for the move, its going to be great with the tenants in my 2 places covering expenses on new place,
robots
Morning Robots,
daughter went to a couple of inspections in Toorak yesterday, first one a 2 bdr they want $600 k's, heaps of asians interested, second a 1 bdr for , originally 350...now its going to auction....lots of asians again...
prices last year were 200k's below the current asking prices....she has decided she wants to live in Toorak now too.....
also, there is one across the road in Sth Yarra for 500k's.....50 yards away...better value....
however I bet they all go for above the asking prices
cheers
Housing tipped for price implosion
Mr Chancellor, whose Crunch Time for Credit? was published in 2005, estimates Australian house prices are more than 50 per cent above their fair value -- a once in 40-year event. " If house prices were to revert to their historic long-term average (ratio of average price to average income) they would fall quite considerably," he told The Australian.
However, "given the great growth in private sector credit and the vulnerability of the housing market . . . Australia is not out of the woods. It hasn't even entered the woods."
hello,
b. they live in a concrete jungle, here we have trees and birds and special people who make this place one great joint
c. yeah man roll on the treadly down to Brooklyn and hook yourself up some crack, every street corner, pipes, caps
Interest rates are now neutral......With the risk of serious economic contraction in Australia having passed some time ago, the Board has been adjusting the cash rate towards levels that would be consistent with interest rates to borrowers being close to the average experience over the past decade or more. The Board expects that, as a result of today’s decision, rates for most borrowers will be around average levels. This represents a significant adjustment from the very expansionary settings reached a year ago.
for an inflation rate of 2–3 per cent.....The Board will continue to assess prospects for demand and inflation, and set monetary policy as needed to achieve an average inflation rate of 2–3 per cent over time.
averaged over time.In both underlying and CPI terms, inflation over the most recent 12 months was around 3 per cent. Nonetheless, the extent of decline from here may not be quite as much as earlier forecast and inflation now appears likely to be in the upper half of the target zone over the coming year.
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