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 …
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 …
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 …
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 …
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 …
A report from the University of Melbourne Centre for Corporate Law and Securities Regulation shows bankruptcy is rising and becoming a “middle class phenomenon” in Australia. The main cause of bankruptcy in the middle class has been due to unsustainable home loans. Insolvents are increasingly from professional and higher status …
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