It has been a bad weekend around the country for Real Estate. News Limited reported auction clearance rates have “collapsed” in Australia’s largest housing markets. According to the paper the total volume of homes traded at auction over the weekend in Sydney, Melbourne, Brisbane and Adelaide was only $242.3 million, …
Figures from the ABS on Monday showed Melbourne was the star performer in Australia’s Real Estate markets. For the three months to September 2010, prices rocketed 2.7 percent in Melbourne, way in front of the next best result of just 0.4 percent (Perth) and with the majority of capital cities …
The Australian Bankers’ Association has reviled today that the extra hike in mortgage rates is due to international investors getting extremely nervous about Australia’s housing bubble. Steven Munchenberg from the ABA said “Over the last few weeks, we’ve had a lot of international investors asking very detailed and probing questions …
Wayne Swan would be fuming tonight. The Reserve Bank of Australia has put up the official cash rate another 25 basis points, only for the Commonwealth Bank of Australia to up rates 45 basis points. The 25 basis point rise to 4.75% will come as another blow to home owners …
According to official housing data released today by the Australian Bureau of Statistics, Australia’s Housing Market has slammed on the brakes with five of eight states going into reverse gear. The weighted average of eight capital cities barely kept its head above water, rising only 0.1% for the September 2010 …
The latest survey of global house prices conducted by the Economist magazine, show Australia has the most overvalued housing of the 20 countries it surveyed in the world. According to the Economist, Australia’s housing bubble is now overvalued by 63.2 percent, having ballooned another 18.4 percent in the past year. …
On Friday, PerthNow reported that due to a flood of properties, sellers are being forced to reduce their asking prices by 6 percent. “HOUSE prices in Perth are on a downward trend with sellers reducing asking prices by 6 per cent as the local market floods with properties for sale, …
Late last month we reported that global rating agency Finch Ratings would stress test Australian banks after an avalanche of inquiries questioning the sustainability of Australia’s housing bubble. Fitch today has reported banks could manage a 40 percent plunge in house prices and a home loan default rate of 8 …
The Adelaide Advertiser has today printed a two page spread on pages 10 and 11 tittled “Has the housing bubble burst?”. It reports “official” figures supplied exclusively to the paper showing house prices are starting to fall in Adelaide, down $10,000 or 2.4 percent to $400,000 in the September quarter. …
In an address to the CPA Australia conference, Luci Ellis, Head of Financial Stability for the Reserve Bank of Australia has warned poor investment yields are a sign there is an asset bubble. “If rental yields are very low, investors are buying properties without really thinking about the rental yield.” …
House prices are starting to fall in Australia, with the median national house price falling 0.2 percent in August according to the RP Data Riskmark Index. In Melbourne, house prices fell 1.5 percent reducing the median house price to $470,000. Brisbane house prices fell 2.3 percent to $434,000 for the …
Global rating agency Finch Ratings has announced it will start stress testing Australian Banks after a flood of inquiries questioning the sustainability of Australia’s housing bubble. Ben McCarthy, Finch Rating’s Australian Managing Director said “Over the last few months, Fitch has received numerous enquiries as to the sustainability of Australian …
A secret treasury economic brief to the government warns Australia’s high level of household debt and Australian bank’s reliance on overseas funding are significant risks to the Australian economy. The brief, known as the “Red Book” was made public on Friday after many freedom of information requests. “Highly indebted households, …
Latest data from the Melbourne Institute show the number of households that are debt free has fallen to 9 year lows with only 36.2 percent of households holding no debt in the September quarter, a record for the survey which began in 2001. Recent ABS data shows Household debt has …
Borrowers will need to brace themselves for a raft of rate rises next year as the economy strengthens according to a former senior Reserve Bank economist. Paul Bloxham, the newly appointed HSBC chief economist for Australia and New Zealand has predicted the RBA will bump up the official cash rate …
You have heard it time and time again. A small miracle has occurred down under, we have dodged the biggest financial crisis since the great depression and are on the road to recovery. But are we? Are we really in the Great Impression – The impression that everything is a …
Morgan Stanley chief strategist Gerard Minack has today warned clients that Australia’s housing bubble is 40 percent over fair value and could be popped if banks tighten credit or the loss making landlords start to sell. He claims investors have become “Ponzi borrowers”, relying on capital gains to service massive …
Nobel Prize-winning economist Joseph Stiglitz told a Sydney forum on Friday that “There is the beginning of a cause of concern, and it would probably be prudent to take some actions” on our housing bubble. Professor Joseph Stiglitz was a former world bank chief economist. His predictions could be on …
Yesterday, the China Banking Regulatory Commission (CBRC) announced stress testing of banks with modeling to include a 60% price fall of house prices in China’s 7 top tier cities including Beijing, Shanghai and Shenzhen. Today, it has been reported the stress tests will not only include banks, but extend to …
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 …
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