Who actually predicted this Property boom?

[trainspotter]

20% surge is recorded

Update Capital city home prices rose by a record 20 per cent in the year to the end of March, giving the Reserve Bank more reason to lift interest rates tomorrow.

For the quarter alone, home prices rose 4.8 per cent, easing from a revised 5.1 per cent recorded for the December quarter, the Australian Bureau of Statistics said today. The annual pace compared with the revised 13.5 per cent gain for all of 2009, indicating house price increases are accelerating.

''I think the RBA will take notice of the acceleration in what is essentially house price inflation,'' Citi economist Josh Williamson said.

http://www.smh.com.au/business/home-prices-surge-record-20-20100503-u2im.html

Well done robots .......

 

[drsmith]

''I think the RBA will take notice of the acceleration in what is essentially house price inflation,'' Citi economist Josh Williamson said.

Is that soda water the RBA is carrying towards the punchbowl to dilute it a little more ?

 

[kincella]

oh well, I have been predicting a continual rise of a modest 10% pa for housing since I first started blogging back in 1999......
I have had other nicks up to 2005...but the same nick since then....so all my predictions and advice have been out there on the public record for the past 5 years....
but then I am not a supposed guru, nor earn any money from my calls, nor have any fame in that arena......
all I can say is, all of the so called guru's keep making the wrong calls about the housing market.....but the majority of people take no notice anyway...hence the hundreds of thousands of realty transactions every year...by the buyers, upgraders, downgraders, and investors......
renovaters, and developers.....
compared to the very regular and vocal anti price brigade we find on these forums....is there 50 of them here...compared to say 5 very happy property people........
just factor in the same growth for the next 50 years....and you should have a good investment to pass onto the children

 

[tech/a]

People never learn

DEMAND----SUPPLY

If there is no or little demand in an area then prices drop/stay stat/or slowley rise.

If demand is strong then prices rise
If demand is very strong then prices rise higher than the average.

Its that simple its not complex.

 

[Ageo]

Tech i understand demand - supply.....

i.e our area has a shortage on homes and there isnt enough being built to keep up with the growth.

Problem, average home prices will get to the point where people cannot sustain to pay for it, so unless wages jump fast something needs to correct.

 

[tech/a]

Tech i understand demand - supply.....

i.e our area has a shortage on homes and there isnt enough being built to keep up with the growth.

Problem, average home prices will get to the point where people cannot sustain to pay for it, so unless wages jump fast something needs to correct.

This situtation is not new in places like the UK.
It may well become more common place here.

In the UK it is not unusual for many to have to wait (Renting) until their parents pass on before inheritance or "Old Money" is released. Normally in the way of a home.

I dont know of any written law that states that housing must be made affordable to the masses at all times and that if it isnt house prices must drop OR wages must be made high enough to allow affordability.

You will get a lot more "Family" owned homes where members of the family living in the home pitch in to buy it.
More syndicated buying particularly in Investment properties.

The trick most are missing is that prices will rise and are rising quicker than you can save.We can see from the Housing thread which dates back years that all those who waited are left still waiting and in a far worse position than when they first started waiting for better prices.

1 house means you keep abreast of price increases and inflation.
2 and if geared properly some profit likely
3+ now your talking.
There are many ways those without a large capital backing can take part in property its just some creative thinking thats required.

Either that or just give up and rent.---the option most take up.

 

[dhukka]

Maybe if we tweaked the title just a bit to read:

"Who actually predicted this Property bubble?" we might get a different response.

 

[kgee]

Either that or just give up and rent.---the option most take up.

I like the option of shifting to somewhere more affordable

 

[tech/a]

Maybe if we tweaked the title just a bit to read:

"Who actually predicted this Property bubble?" we might get a different response.

What is this question after---a name---someone to put up their hand and say I did?

I like the option of shifting to somewhere more affordable

Creative thinking

 

[professor_frink]

Is anyone else that lives outside of the capital cities not even noticing anything at all?

 

[nunthewiser]

Is anyone else that lives outside of the capital cities not even noticing anything at all?

Noticing a sheetload of new listings and older listings sitting stagnant in my area.

But hey never let the truth get in the way of a great story they say.

 

[trainspotter]

Stagnant to downward trend in the Midwest of WA. Henry Tax reform and Govt 40% tax on mining will certainly put the brakes on the developing of the Midwest iron ore prospects currently on the planning approval roundabout.

 

[nunthewiser]

wow man .......... we must be neihbours or somethin bro!

 

[trainspotter]

LOLOL ...... Hmmmmmmmmm .... let me think about that one ??

 

[Tink]

Good posts Tech, I agree.

Houses are still moving around here.

 

[Uncle Festivus]

Another thread on property - will somebody please give the right answer so we can all get some sleep?!

When someone sings his own praises, he always gets the tune too high.

 

[Tink]

...
DEMAND----SUPPLY

If there is no or little demand in an area then prices drop/stay stat/or slowley rise.

If demand is strong then prices rise
If demand is very strong then prices rise higher than the average.
...

There's your answer, now you can get some sleep.

 

[medicowallet]

To the OP.

The real question should be:


WHO PREDICTED THE GOVERMENT WOULD BAIL OUT HOMEOWNERS WHO TOOK ON TOO MUCH RISK, AND BUILDERS WHO WERE NOT UNDER THREAT OF LOSING THEIR JOBS.

 

[drsmith]

WHO PREDICTED THE GOVERMENT WOULD BAIL OUT HOMEOWNERS WHO TOOK ON TOO MUCH RISK, AND BUILDERS WHO WERE NOT UNDER THREAT OF LOSING THEIR JOBS.

And what else has it got up its sleeve to keep the property punchbowl on the table ?

 

[kincella]

the Vic state govnuts have $20,000 on offer to FHB for new homes......in their latest budget
I am guessing the feds will offer a similar incentive.....
then add in the developer bonuses that are sure to come....

whilst the drama with the resouces industry tax will produce long term damage control and lack of confidence in that industry.....
we will need to come up with an alternative to the resources to generate jobs, income and taxes.....
the housing shortage...is the most obvious alternative , to generate jobs in the building industry