Houses prices fall 1.1 percent in December

January 19, 2011 admin Australian Economy, Australian Housing 13

According to data released today from Residex, House prices in Australia fell 1.1 percent in December. During December falls were experienced in every capital city except Brisbane, although Brisbane recorded a fall of 2.9 percent for the year.

Residex Chief Executive John Edwards said they wouldn’t know until the end of January if this was a “serious indicator of a pending correction”

» Property values fall in December – The Sydney Morning Herald, 19th January 2011.




13 Comments

  2. what’s your number averageBloke ? How but I’ll text you at 20% and I’ll send you a special delibery at say 40%…it may take a while though…like a decade or so…

  3. AverageBloke, is it that hard for you to except that OZ will have a house price correction of up to 20% or maybe more? it has happened in the past and will happen again. Its just the way the value of things work because if you dont have corrections you cant have booms. Oz just put off the corection for longer by taking on more debt back in 2008 CFC mark 1 and now we are maxed out on debt and the bill has to be paid, our stupid Goverment has spent all our nations money like the fools they are and put us in massive debt and now that Qld has gone to shit because of the shocking floods they will have to tax us like crazy to try and fix things up there this will also mean big cuts in spending so no money left to prop up house prices. To sum things up house prices are screwed!

  5. Well, AB – we’ve already seen >50% discounting in the “top end of Town” luxury apartments, so for at least one housing sector, your “Special Delivery” arrived last year. A quick search through refindhouseprices.com today reveals a number of 20% + discounts in “stressed areas”, and I presume you are aware of the troubled (potentially bankrupt) “Major Developers” who put their eggs in the “Gold Coast Boom” basket. Massive overbuilding of landless “Luxury Apartments” in Brisvegas, GC, Sushine Coast, Melbourne, and particularly Sydney will put ever more excess stock on what is already a very oversupplied market (for this housing class), and many very well-informed Econobloggers have predicted up to 90% (yes – NINETY percent!) discrepancies between the “anticipated value”, and the real (i.e. what the buyer is prepared to part with) value of these properties. Not ALL Properties will experience this magnitude of “perceived value loss”, but when you have THOUSANDS of unsellable apartments, selling eventually for well-below “rock-bottom” prices, this will certainly drag the mean housing cost down, and all of a sudden, a National shortfall of 40% (compared with the bubble-top prices) moves from “impossible” to “quite likely”.

  6. 2bob, I think a tax deduction for bona fide flood or bushfire repairs would be a lot better than a levy. The PM is only one seat away from an election so she should also have an eye on the politics of an unpopular levy. Of course a tax deduction doesn’t add to gov’t coffers or allow expansion of the bureaucracy so we probably won’t see anything so sensible from such an image conscious PM who is dying to be seen as finally taking the “tough” decisions.

  7. Hmm that’s a valid point but like most average people I need a small home on a small block. I’m not a latte sipping metrosexual therefore apartments and their value are somewhat meaningless to me and by the looks of it the majority of working people who have tools, cars, children and in my case a small dog, as well.

    In other words the apartment market is similar … yet different to the housing market. Housing and land will always be more in demand than skyboxes.

  8. Rod, I would like to think you tax deduction idea would get up but i am afraid that the current Government has shown up to date to be too stupid to handle this in a smart way, they will just wack us all with more tax mark my words!
    As long as this current ship of fools are in charge Australia is only heading in one direction and thats down the drain, just sit back and see if I am not proven correct over the next few years 🙁

  9. AB,

    Your not going to see 40% of the bat. I think over the next 2 to 3 years you will see house prices come down 30 – 40% as lets face it will all be evolving around what China does with their economy. I believe their economy is screwed as inflation is starting to come out and haunt them for printing a ton of money, building massive cities that are empty that do not generate any money, and for the under value of their yuan. None of this can be good and is starting to catch up with. The world is about to see China is not the envy of all economies and that they have made some really stupid decisions. AB will it hit 40% maybe or maybe not but I certainly think as China goes down then Australia and its employment will be right behind it driving down demand and increasing mortgage defaults. The problem with Australia is real simple DEBT. Aussie have spent way to much money and with the RBA having no choice but to raise interest rates that could be the final nail in the coffin. Only time will tell.

    LBS

  12. Has anyone on here been playing around on http://www.realestate.com.au lately?

    They now show ‘Supply and Demand’ for each suburb – based on the number of enquiries to the amount of properties on the market… the eastern suburbs belt from Ringwood to Rowville in Melbourne looks screwed based on the figures there in the last 6 months..

    It’s the bayside suburbs that are saving Melbourne from further falls at the moment.

Comments are closed.