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 …
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 …
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 …
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 …
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