New home sales have continued a downwards trajectory, with the Housing Industry Associating reporting its home sale index falling 5.1 percent in June. This follows a 6.4 percent drop in May. Melbourne recorded the largest falls, sliding 10 percent for the month. Western Australia and Queensland trailed, falling 5.2 and …
We are continually told that a shortage of houses means prices will continue to out pace the buyer’s ability to afford them, and that money grows on trees. However two other shortages are starting to show its head in Australia’s property bubble. The shortage of greater fools – someone that …
According to research conducted by the National Australia Bank, expectation of house asset price rises have fallen around the country. NAB chief economist Alan Oster said ”There has been a very big change in expectations.” Melbourne lead the falls with most respondents predicting prices will only increase 0.7 percent over …
As Australia progressed through the stages of the housing bubble, all range of excuses were invented to support the unsustainable credit binge on property. We were told if we look back over 100 years, houses double every 7 years. Then there was a shortage of houses, high immigration and the …
Auction clearance rates are continuing to decline around the country, with rates significantly lower that the same time last year. According to Australian Property Monitors, Sydney had a clearance rate of 49.8 percent last weekend, while Melbourne recorded 55.6 percent. For the same period last year, Sydney cleared 70.5 percent …
The Daily Telegraph has revealed the Federal Government has decided to boost the contribution threshold on its First Home Saver Accounts. For the 2010-11 tax year, if a first home saver contributes up to $5,500 to their account, the government will chip in the same 17% or $935 on $5,500. …
The latest rental price data from RP data shows rents for houses have remained flat over the June quarter. Hobart recorded the largest falls in rents, falling 1.5 percent. Melbourne was close behind at 1.4 percent, while Brisbane, Adelaide, Perth and Darwin recorded no change. Sydney witnessed a rise of …
According to Kenneth Rogoff, the former chief economist of the International Monetary Fund and Harvard University professor, China’s property market is beginning a collapse. “You’re starting to see that collapse in property and it’s going to hit the banking system” Xu Shaoshi, People’s Republic of China’s Minister of Land and …
Bloomberg today reports that Australian home prices are now 82% higher than in the U.S. and that rising interest rates may pop the bubble. According to Jeremy Grantham, Australia’s home prices need to fall 42 percent to “return to trend,” – “It’s like a time bomb, just waiting for the …
New Zealand Finance Minister Bill English has told Business Leaders at Auckland’s Mood of the Boardroom breakfast yesterday that by international measures, Australia’s and New Zealand housing markets are “still way overpriced” even going as far to say they are higher than China. “By any international measure, our housing market …
The government has often boasted how Australia has dodged the worst of the global financial crisis, but a study released today shows the length some Australian’s have gone to stay afloat. Despite National Accounts showing the aggregate of all households in Australia are spending 6.6% of their disposable income on …
The Housing Industry Association (HIA) has today reported a plunge in the volume of new house sales in May, the weakest since July 2008. Sales fell 6.4 percent in May after reporting a rise of 6.2 percent in April. The falls in new home sales follow mortgage approvals sliding for …
Auction clearance rates have been dismal at late, and today is no exception. Figures from the REIV show a preliminary Auction clearance rate for Melbourne of 65 percent from the 773 auctions held today. The same weekend last year had a clearance rate of 87 percent. Clearance Rates from Long …
China’s annual audit has reveled some of China’s provinces have serious debt problems. Liu Jiayi, head of the National Audit Office wrote in the report “The scale is large, and the burden is quite heavy”. In 2008 when global demand for China’s products started to fall, the government, like many …
The U.S. Commerce Department last night reported sales of new homes sunk 33 percent in May to the lowest level since records began in 1963. The May collapse is also the biggest monthly drop on record and follows the end of federal tax credits used to prop up the unsustainable …
RBA deputy governor Ric Battellino has today downplayed the housing bubble saying house prices in Australia, relative to income, was reasonable. In his speech today, Mr Battellino said ‘‘People feel that house prices in Australia are quite high and that’s quite often because the ratio of house prices to income …
BIS Shrapnel’s Residential Property Prospects report 2010-2013 predicts house prices around the country to continue its momentum upwards. Contained in the report is predictions of a 22% increase over the next three years for Perth and 20% for both Sydney and Adelaide, while all other capital cities will see growth …
As expected by the majority of economists, home loan approvals continued to fall in April making it the seventh straight monthly decline. April recorded a 2.8 percent fall for owner-occupied finance commitments. The last time we saw numbers this weak was in March 2001. We normally publish our own charts …
Reserve Bank Boss Glenn Stevens has today warned Australian households to reduce their debt levels and start saving. The warning stems from the European debt crisis, with Mr Stevens saying markets can ignore problems they know about for a long time before something triggers a sudden collapse. “Markets can happily …
As expected, this weekend’s surge of listings as investors and owners cash in and head for the exits has seen auction clearance rates take a dive. The auction clearance rate in Melbourne had been running in the vicinity of 85 percent, but according to revised numbers from the REIV, it …
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