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 …
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 …
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 …
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 …
The Australian Newspaper has reported International Hedge Funds have been shorting Australian Banks for fears of a housing crash in Australia. According to the paper, a unnamed New York hedge fund manager said there were doubts the strength of Australia’s property market could be sustained. “There’s a lot of scepticism …
The Australian Bureau of Statistics (ABS) has today reported home building approvals have fallen 14.8% between March and April this year, seasonally adjusted. April is the third month building approvals have moved downwards, and this follows the sixth straight month of falling home loan approvals. » 8731.0 – Building Approvals, …
The number of properties being listed is surging around the country with experts predicting some owners are heading for the exits. Data from the REIV reveals there were 924 reported auctions last weekend, 900 scheduled for next weekend and a record 1000 the week after. Louis Christopher from SQM Research …
The Northern Territory News has reported that houses in Darwin are now more expensive than in New York and London. Figures from Residex and APM has the median price of a Darwin house at $549,035, or $90,000 more expensive than London. A freestanding house in New York is $80,000 cheaper. …
In a National Economists Club luncheon in Washington on Thursday, IMF economist Prakash Loungani warned New Zealand, Australia, the Netherlands and Belgium had the “biggest misalignment” with historical price to income ratios and that Canada, Sweden, Norway and Australia had the biggest misalignment in terms of price-to-rent values. In his …
Property “experts” predict first home buyers will be back in the market within 6 months with hope they will prevent a property crash. Property markets are close to frozen at the moment with many property purchases subject to the sale of the purchasers own home within an pre-negotiated time period. …
Luci Ellis, Head of Financial Stability Department for the Reserve Bank of Australia today said “Recent data suggest that we do not have a credit-fuelled speculative boom on our hands” after data from the Australian Bureau of Statistics out earlier this month showed house prices surged 20 percent across the …
Mortgage approvals continue to plunge around the country, falling to a nine year low in March. The 3.4% fall was the 6th consecutive monthly fall and is a good indicator of what to expect for house prices in the coming months. The 26 percent decline from the peak in June …
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