Financial commentator and co-host of Channel 7’s Sunrise, David Koch, is considered one of the more influential people in the finance industry, appealing to much of the Mum & Dad segment.
Today, Kochie featured a story on Australia’s falling property market – yes, that’s right, falling.
In an interview with Louis Christopher, a property analyst from SQM research, Kochie explains that it is the worst period for house prices in 12 years, that house prices are falling in almost all regions around the country, the number of listings is up 70% and auction clearance rates are falling rapidly. He asks the question if home owners are being given the property price truth?
Kochie has a problem, he sees all these houses that have been up for sale for a year in his area, but then reads the weekend papers about all this good news that properties are being sold. He says “It just doesn’t match up.”
Mr Christopher explains that many of the news papers make most of their revenue from real estate advertising and will promote property in a positive way, before joking with Kochie about the fact that “property never falls”.
He tells the Australian, “I find it amazing and quite ironic that so much expense and effort has been put into cleaning up the financial planning industry, but most of the problems are actually occurring on the real estate side,”
“We need to see a similar clean-up of the real estate industry, where agents need official qualifications and reporting bodies need to be independently audited if they are going to be used in the public sphere.”
He is referring to the fact that investment advisor’s require Australian Financial Services licences and financial products require Product Disclosure Statements for investments that could be as small as $1,000, let there is no such requirement for property investments which is most people’s biggest asset and could range between the hundreds of thousands, even millions of typically leveraged dollars. Real Estate professionals can, and do say just about anything they want.
Louis told Sunrise he expects falls in house prices of between 5-10 percent this year, and in some regions between 15 to maybe 20 percent as a result of having too much household debt and by enticing first home buyers to bring forward their purchases resulting in little first home buyer activity in the market today. He will join Kochie on Sunrise again tomorrow to talk about the worst effected regions of the “property price plunge”.