DOMESTIC commercial property rather than the US sub-prime crisis is emerging as the greatest threat to bank profits. Clime Asset Management managing director Roger Montgomery predicted tougher times ahead for the banks on a number of fronts. “What I think needs to be understood is that the consumers have only …
THE high cost of housing is being blamed for more than half of Generation Y still living at home with their parents, as shown in a new survey. The proportion of 17-to-32-year-olds living at home hit 50.2 per cent in 2006, the Housing Industry Association survey shows. » Housing costs …
PLUMMETING property values have prompted warnings Australia is heading for a one-in-a-100-year real estate slump. New figures from property analyst Residex showed house and unit prices in nearly every city and country centre fell last month. The last time all states fell at the same time was just before the …
A new report shows Australian house prices fell in every capital city last month. It’s the first time it’s happened since the Great Depression, and housing experts say we’d better get used to further falls in the market. » Aus house price fall – Sky News, 12th July 2008.
What a difference a couple of weeks can make. On the 17th June, The Perth Sunday Times ran an article titled “Relief ‘within decade” predicting falls of 10 to 15% over a year or two. The artcle quoted REIWA president Rob Druitt saying “though Mr Ruthven’s logic was correct, he …
AUSTRALIA’S residential property prices are among the highest in the world. But most of us still think that prices can’t fall. It’s time to put that fallacy to the knife, according to Intelligent Investor research director Greg Hoffman. “The US property market meltdown should dispel this myth immediately,” Hoffman says. …
STRESSED home owners and investors are flooding the market with thousands of houses but agents say they can’t find any serious buyers for some properties. As home mortgage lending in Queensland dives for the second consecutive quarter, the number of houses for sale is up 150 per cent compared with …
This week on Inside Business, Alan Kohler interviewed Jonathan Plain, Chief Investment Strategist at HFA Asset Management on Unsustainable Lending Practices. Jonathan mentioned many of the facts we have raised here. “In actual fact, our house prices have risen more than they have done in Britain and the United States …
ANOTHER 72,000 households joined the ranks of the mortgage-stressed last month as family wealth plummeted over the three months to March — the largest quarterly decline on record. The number of households struggling to meet mortgage repayments jumped 15% to 784,000 in May and is likely to reach 923,000 by …
The Sydney Morning Herald today has run an balanced article on the Housing Bubble and the level of household debt. It gets the views of several experts including Morgan Stanley’s Gerard Minack, the University of Western Sydney’s Associate Professor Steve Keen and Michael McNamara, general manager of APM. People aren’t …
IT COULD be a warning sign, or maybe just a blip. Property sales are flashing a signal that the fall in Sydney house prices will not be limited to the city’s west.An analysis of 2008 sales reveals that the great Sydney equation – take property, mix with water views, and …
AUSTRALIA’S housing market took its biggest quarterly dive in five years in the first three months of this year, according to the latest survey figures. » Record slump in house prices – news.com.au, 7th June 2008
SYDNEY’S rental crisis might not be nearly as bad as the real estate industry would have you believe, new figures show. The Real Estate Institute of NSW, which last year predicted a rental squeeze so bad rents would rise by 20 per cent, says Sydney’s current rental vacancy rate is …
HOUSE prices in some parts of Sydney have almost halved as battling borrowers struggle to keep up with increasing interest rates. The falls – in Sydney’s west, the Hills district, and Sutherland Shire – are far steeper than previously thought, and show the devastating effects of the RBA’s rate-hiking spree. …
Now that the Bubble has popped, the Head of Real Estate Institute of Victoria is calling for incentives to help make the bubble even bigger. PROPERTY markets around Australia continued to struggle over the weekend, with auction clearance rates now below 50 per cent in the key markets of Sydney …
HOUSE prices in some parts of Sydney have almost halved as battling borrowers struggle to keep up with increasing interest rates. “It is clear that some people just paid the wrong price for a property and that happens a lot,” Mr Edwards said. “In every suburb in Sydney, there will …
THE economy is headed for a dramatic slowdown that will drive up the unemployment rate as high interest rates sap consumer confidence. Yesterday’s stark warning from the Reserve Bank appears to be backed by Treasury, with Wayne Swan confirming that Tuesday’s budget would forecast a lift in the unemployment rate. …
RAPID rent rises across Melbourne have renewed fears about housing affordability. Office of Housing figures show the metropolitan rental index shot up by 12.5% in 2007. » Homes out of reach after 12.5% rent spike – The Age, 10th May 2008
AUSTRALIAN house prices look vulnerable over the next year as rising interest rates and record levels of mortgage stress take their toll, The Australian reported today. House prices in the US are off by 15 per cent from their highs, while Britain, Europe and New Zealand are also experiencing price …
THE Reserve Bank has warned it will raise interest rates again if the economy does not slow as it expects, but has tipped unemployment will rise. » RBA warns of rise in unemployment – The Australian, 9th May 2008. » Reserve Bank keeps finger on rates trigger – ABC News, …
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