There are no surprises in this months release of the RP Data‐Rismark July Hedonic Home Value Index. House prices continue to decline, falling a seasonally adjusted 0.6% in the month of July and registering the 7th straight month of falls. Since the start of the year, Australian capital city prices have declined 3.4 percent.
» RP Data‐Rismark July Hedonic Home Value Index results – RPdata, 31 August 2011.
Surely we are not following in the footsteps of the rest of the world. They said we were different here!
But .. but the MSM is saying that prices are ready to ‘improve’. Get in now or miss out forever! ;p
I don’t see anything on the horizon which will reverse this trend. RBA can cut the rates but the banks may not follow suit due to the higher cost of borrowing money from overseas. The Government can throw money at home buyers but throw the budget into deficit. And employment conditions continue to deteriorate as the Australian manufacturing sector continues to shrink.
Well its kind of funny that people seem suprised that its all starting to fall apart! Sad that people are so greedy or just that stupied that they did not see it unfolding this way, it crunch has only just started watch as all the neg geared dump and run.
“Surely we are not following in the footsteps of the rest of the world. They said we were different here!”
But Chris Joye is convinced that since there has “never been a property bubble here”, there can’t be a crash either. You see?
If individual wealth destruction is our governments motive, they are doing a fine job. Full credit to destroying the economy must be awarded to our two headed one government. Congratulations – society had no idea as we are more concerned with the price of fuel, bank fees and a few thousand refugees.
Julia is my queen, Queen of the nanny state !!!!!!!!!
House prices are dropping fast now, good luck trying to sell. Sucks to be in debt.
Nah,
Fiction all fiction, HIA says so………
http://www.tradingroom.com.au/apps/view_article.ac?articleId=2597057
“Australia faces a housing shortfall of more than half a million homes by 2020 if construction rates continue at the same pace as the past 20 years, a report shows”
Do you need a license to be a dumbass and also join the HIA?
The thing is it is going to get alot worse.
QLD, WA & VIC are definately experiencing large declines and this will get worse over time. Here is NSW, Sydney especially everything is rosey and the bubble is still as inflated as ever. Prices have actually gone up in many suburbs, which is ridiculus. Obviously there are many greater fools in Sydney, and the banks are still lending large amounts with minimal deposits. Unemployment is the key to the long term sustainability of the housing bubble.
@Yoda. A block of 2 B/R units in South Sydney (Kogarah) were just finished built and were all snapped up for $400K + each.I guess Sydney will be hit eventually but things don’t look as bad here as other states.
@domenic,
Sydney sure is strange, many properties for sale, many are sold, many are not. Some are sold soon after the ‘For Sale’ sign goes up, some are still for sale (even after a long time). Nice houses in Mosman have chuncky price drops (still very expensive though), small boxes piled on top of each other around the area are going for $640K (many of which are still for sale).
A property with something like a shack on it in Engadine (Sydney) sold for over $700K. Ironically the Real Estate agency (I know the Agent personally) stated, “something has to be wrong when a shack in Engadine sells for that”. Its’ not you I pondered, its’ people. The banks are just fuelling them.
Mosman has a price drop, still way out of nearly everybody’s reach. The Sutherland Shire has a price surge, going out of many people’s reach.
If the rest of the country (and planet) is dropping in price, its’ only a matter of time Sydney and Vancouver join the club.
@BotRot. Sure agree with you mate. For your information Engadine was the “cheap area” out in the sticks at one stage as I nearly bought a 3 B/R house their for $400K back in 2008. A good brick home by the way not a shack as you put it. The shire has increased about $200K roughly from 2008 prices. (i.e. from about $500K to $700K) for a reasonable home.
I live in Sydney and there is nothing special about Sydney or NSW for that matter so agree with you that it’s only a matter of time before things start going backwards.
Canberra is the same. It won’t drop a lot unless the Liberals get in a cut the public service. A lot of people here have defence and public service jobs.
Looks like things are falling apart big time, there is no surprise that real estate is going pear shaped. More fool those that don’t step away from the headlights as they get smacked by the truckload of losses about to flood the property market.
Great time to build cash and watch the fireworks explode.
Gee, big mortgage debt will smash family budgets if the old unemployment starts to rise. Might get a emergency RBA rate cut today as European banks are bankrupt. Will the banks pass it on though. Refinancing pressure s there as well now?
In five years time we will look back and recognise the depression we were all in today.
@MMP
Looks like this just started with the Gov announcing the first 5K of Public Servants to go….
From January 1 in NSW first home buyers will no longer get the stamp duty concession for purchase of an existing home on new dwellings will be entitled to the concession. Nartin real estate said extra stamp duty cost would flush first home buyer until the January 1 deadline.
“Between now and January rivers of gold will flow but after the party there will be a hangover,” he said.
http://www.dailytelegraph.com.au/news/sydney-nsw/homeowners-dream-is-now-further-away/story-e6freuzi-1226130967156
@ Free Will
Luckily that is the Liberal Govt in NSW but it does show what they will do when in govt. We still have a Labor territory govt. The federal Labor isn’t doing well at the moment.