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. …
The Sydney Morning Herald has reported today that the Sydney Property Market has hit a brick wall with auction clearance rates falling, fewer visitors viewing open houses and buyers reluctant to commit. The paper writes : ”None of the vendors are happy,” a Newtown agent, Ee Poh Ling, said. ”I’ve …
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 …
In what will be another blow to Rudd policy, the number of victims of the First Home Owners (Vendors) Boost is starting to mount. The Sydney’s Sunday Telegraph has published a story today of several first home owners from Sydney’s southwest where falling prices have resulted in negative equity, and …
The Australian Bureau of Statistics has released their quarterly update to its House Price Index today, showing Australian houses surged an unsustainable 20.0 percent across the eight capital cities in the year to March. This was the largest yearly increase since this index was first created. Melbourne lead the race …
According to Edward Chancellor, author of the book titled Crunch Time for Credit (2005) and a member of US Investment Firm GMO’s asset allocation team, Australia is in the midst of an unsustainable housing bubble that could burst at any time. It’s hard to argue with these claims when reports …
Insurance companies have backed away from the new Home Warranty Insurance Scheme in NSW saying it is not worth their while to insure builders who go broke or are sued for faulty work. This has forced the NSW State Government to take over polices from the 1st July. When Beechwood …
The Financial Times has an interview with Jeremy Grantham, founder and chief strategist at GMO, on bubbles. Mr Grantham has identified over 34 bubbles over the years based on the 40 year event based from price and volatility. At present 32 of the 34 bubbles have moved back to trend …
According to Veda Advantage, Mortgage applications plunged 15 percent in the March quarter compared with the same time last year or 8 percent from the previous quarter. Last Saturday, the Federal Government reversed changes to foreign investment legislation which saw a flood of foreign buyers, typically from China make up …
The Rudd Government has today announced a crackdown on foreign property investors reversing many of the changes it made hastily in 2008 under the umbrella of “Administrative Changes” and imposing tougher penalties on anyone breaking these laws. With house prices in decline in 2008, Wayne Swan made changes to the …
According to The Economist, Australian housing is now 56.1% overvalued based on the long run average of price to rent ratios. The price to rent ratio is seen as similar to that of the PE (price/earnings) ratio used to value shares. Australia is in 1st position on the leader board …
The federal government has no idea how many Australian properties are being snapped up by foreign buyers. According to the Sydney Morning Herald, a government analyst confirmed that no data has been kept on purchases since the administrative changes to the foreign investment laws opening up the flood gates to …
According to data released from the Real Estate Institute of Victoria, the Melbourne median house price fell two percent in the March quarter. This comes amid claims the market was glowing white [hot]. On Tuesday this week, the Sydney Morning Herald said buyers were retreating from the Melbourne property market …
Official figures out today from the Australian Bureau of Statistics show home loan approvals fell 1.8% in February, the fifth consecutive fall. This has prompted some economists to forecast house asset price falls in the next coming months. According to the Sydney Morning Herald, Matt Robinson, an economist from Moody’s …
The Reserve Bank of Australia has today raised the official cash rate from 4 per cent to 4.25 per cent and says there is more to come. In a media release following the rise, the RBA said “Interest rates to most borrowers nonetheless have been somewhat lower than average. The …
Housing Minister, Tanya Plibersek indicated in a interview with the 7:30 report, that one of the objectives of the First Home Owners Boost was to keep the construction sector strong. According to Plibersek, the construction sector accounts for about 9% of employment in Australia. But as predicted, when the government …
Any doubt Australia was not experiencing an ever accelerating housing bubble was squashed yesterday, when RP Data – Rismark released house price data for February. In Darwin, Residential Property (Units & Houses) increased 19.7% for the year to February 2010. This was closely followed by Melbourne (19.3%), Canberra (14.7%), Sydney …
In a press release issued by the Real Estate Institute of Australia (REIA), REIA president, Mr David Airey said he was stunned to hear RBA Governor Glenn Stevens tell Channel 7 Sunrise viewers that “property was no longer the easy path to prosperity”. In substantiating his claims that property can …
Glenn Stevens, Governor of the RBA made his strongest indication the reserve bank is worried by Australia’s surging property bubble in a prerecorded interview on Channel 7’s Sunrise. He said “I think it is a mistake to assume that a, you know, riskless, easy, guaranteed way to prosperity is just …
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