According to data from RP Data and the HIA, the number of land sales across Australia in the September quarter plunged 57 percent for the year, falling to levels not seen since September 2001. Melbourne saw a 74 percent drop over the year.
The median price for a lot in Australia increased 5.2 percent to $186,629.
Naturally, Housing Industry and Real Estate Lobbyists jumped on these latest figures indicating there will be a chronic shortage of homes as a result and prices will skyrocket. The HIA believes Australia now faces a 200,000 unit housing shortage.
» Land sales plummet, adding to price squeeze – The Sydney Morning Herald, 18th January 2011.
» Land sales slump but prices hit new heights The Age, 19th January 2011.
It isn’t just land, Look at the last 3 months of sales volumes in Melbourne.
http://www.myrp.com.au/melbourne_house_prices.do
Now that is ugly.
Couple that with listings in FHB areas like the one linked below and you wonder how well this might end. Compare current listings to 2008 where there was a well defined slump that prompted $2B of direct and probably $15B of indirect fiscal stimulus (not to mention the monetary hit as well)
http://www.sqmresearch.com.au/graph_stock_on_market.php?postcode=3030&t=1
I took a weekend away and drove thru kangaroo valley, and on up to moss vale, bundanoon and it was amazing to see how many for sale signs there were on fancy houses on small farmsteads. Thought it might be my biased view, but others in the car that believe Australia and Canada are different were also amazed. In places, literally every second or third place for sale. I guess these holiday farms presumibly owned by rick Sydneysiders are first to get un-loaded as people wake up and/or cant service the debt anymore.