Jump to content
House Price Crash Forum

Australia Faces Its Demons


Te Mata

Recommended Posts

0
HOLA441
  • 2 weeks later...
  • Replies 4.4k
  • Created
  • Last Reply

Top Posters In This Topic

1
HOLA442
2
HOLA443
3
HOLA444

https://www.abc.net.au/news/2023-07-27/albanese-labor-greens-housing-double-dissolution-election/102657024

"Reintroducing this bill gives the Coalition and the Greens an opportunity to stop playing politics and support a $10 billion housing fund that the Australian people clearly need and support," the prime minister said in a statement. 

The Coalition and Greens have long been critical of the government's housing bill, which seeks to create a future fund to invest in social and affordable housing. 

As negotiations continued, Labor announced a one-off $2 billion investment in social housing but that wasn't enough to win the Greens' support, which is crucial if the Coalition remains opposed to the legislation. 

Link to comment
Share on other sites

4
HOLA445
18 hours ago, PeanutButter said:

Looks around the country on domain.com.au with a <A$250k (~GBP130k) filter.


There is an amazing lack of houses in that range even in the back of Bourke.

 

And this is an entire continent. Crazy.

Link to comment
Share on other sites

5
HOLA446
6
HOLA447
29 minutes ago, PeanutButter said:

I don’t know where the money comes from.

It’s coming from savings. People are now using their saving and that of their parents to buy houses. Australia is more or less a giant mine for China, so they don’t really need a modern economy. If they want to throw all their money into housing it’s their choice. I still think this is something perverse and obscure and I guess this is the first time in history where this obsession about housing is so evident. No idea where it started no idea where it’ll end.

However, the fact that Australia and NZ are in the middle of a housing crisis simply tell us this has nothing to do with economics but rather deliberate policies in place in those two countries. 
 

The only English speaking country that seems to be immune from this disease is the US where I guess people still value work and understand that work makes you wealthier and not a mortgage. 

Link to comment
Share on other sites

7
HOLA448
1 hour ago, NoHPCinTheUK said:

It’s coming from savings. People are now using their saving and that of their parents to buy houses. Australia is more or less a giant mine for China, so they don’t really need a modern economy. If they want to throw all their money into housing it’s their choice. I still think this is something perverse and obscure and I guess this is the first time in history where this obsession about housing is so evident. No idea where it started no idea where it’ll end.

However, the fact that Australia and NZ are in the middle of a housing crisis simply tell us this has nothing to do with economics but rather deliberate policies in place in those two countries. 
 

The only English speaking country that seems to be immune from this disease is the US where I guess people still value work and understand that work makes you wealthier and not a mortgage. 

No - none of this is the case here.

Link to comment
Share on other sites

8
HOLA449
5 hours ago, NoHPCinTheUK said:

The only English speaking country that seems to be immune from this disease is the US where I guess people still value work and understand that work makes you wealthier and not a mortgage. 

You mean the country with 30 year fixed mortgages…?

Link to comment
Share on other sites

9
HOLA4410
5 hours ago, NoHPCinTheUK said:The only English speaking country that seems to be immune from this disease is the US where I guess people still value work and understand that work makes you wealthier and not a mortgage. 

Look at the US stockmarket. That’s where the money has gone, which is arguably less destructive than a housing boom but still an asset bubble nonetheless. 
 

The longer term mortgages probably make the housing market more volatile in the US. It’s very difficult to move if you find your next mortgage is much more expensive. Few providers allow porting to another property unlike here.  People are stuck. 

Link to comment
Share on other sites

  • 1 month later...
10
HOLA4411

On it goes:

 

From the Gruniad.com/au

 

++++++++

House prices rise for sixth straight month

Australian home values are up 4.9% since February, adding about $34,000 to the average dwelling.

CoreLogic’s national home value index, released today, marked a sixth consecutive monthly rise, up 0.8% in August. Every capital city except Hobart (-0.1%) recorded a rise in dwelling values over the month.

Lower than average advertised supply levels have put upwards pressure on home values across most capital cities, while flatlining interest rates are boosting buyer confidence. Gains were led by a 1.5% increase across Brisbane, followed by Sydney and Adelaide where home values were up 1.1%.

CoreLogic research director Tim Lawless said: “Sydney has led the recovery trend to-date with a gain of 8.8% since values found a floor in January this year.

“Brisbane has also posted a strong recovery with values up 6.2% since bottoming out in February.

“At the other end of the scale, some other capital cities are better described as flat, with Hobart home values unchanged since stabilising in April, while values across the ACT have risen only mildly, up 1% since a trough in April.”

Across the capital cities, house values are up 6.3% since bottoming out in February, compared with a 4.9% rise in unit values.

Conditions across regional housing markets were mixed. Values were down over the month across the non-capital city regions of NSW (-0.2%) and Victoria (-0.6%), rising across regional Queensland (0.8%) and SA (0.9%), and holding flat in regional Western Australia and Tasmania.

Parts of the Gold Coast and Sunshine Coast comprised seven of the top 10 markets for the largest capital gain over the three months ending August.

The Australian Bureau of Statistics will release its latest lending data on Friday, ahead of the Reserve Bank board meeting on Tuesday. The RBA is expected to keep rates on hold at 4.1% for a third month in row, on the back of cooler than expected monthly inflation.

Link to comment
Share on other sites

11
HOLA4412
12
HOLA4413
  • 3 weeks later...
13
HOLA4414
14
HOLA4415
On 28/07/2023 at 09:09, 17 Year Veteran said:

Looks around the country on domain.com.au with a <A$250k (~GBP130k) filter.


There is an amazing lack of houses in that range even in the back of Bourke.

 

And this is an entire continent. Crazy.

Yep, and even abandoned terraces in the NE of England would be preferable to some of those places in AUS. Can you believe it, they have a saying in Australian realestate circles "They aren't making any more land, you know" when justifying obscene prices. 

Link to comment
Share on other sites

15
HOLA4416
16
HOLA4417
On 01/09/2023 at 01:45, Orb said:

So the Aus crash was a flash in the pan then?

Yep, obscene house prices are even more of a government imperative and cultural obsession than in the UK. Mass immigration, land banking, deliberate drip feeding the market and insane tax breaks for parasite scumlords. Any government than spoils the show will be booted out for that issue alone.

Link to comment
Share on other sites

17
HOLA4418

Meanwhile, in the lucky country, the budget surplus has been revised. Upwards.

 

Like a LIz Truss wet dream, the planned Phase 3 tax cuts from June next year, which will put ~$10k pa (net!) in both my and my partner's pockets, chug along even under the new government.

 

Time to buy another investment property 🙄

 

From the Guardian:

Budget surplus at $22.1bn

Treasurer Jim Chalmers has unveiled this morning a bigger budget surplus than expected, with the latest figures bringing it to $22.1bn.

Chalmers has just appeared on ABC News Breakfast about the surplus now, and called it a “massive turn around”.

We have got the budget in much better nick, at the same time as we’re rolling out billions of dollars in cost-of-living relief for Australians who are doing it tough.

Asked whether this means there is now scope for more cost-of-living relief, Chalmers did not suggest there would be.

He answered by listing the government’s cost-of-living measures that were announced in May’s budget:

Government’s highest priority is rolling out billions of dollars in cost-of-living relief in a way that takes some of the edge of the inflationary pressures rather than add to them. We have carefully calibrated and targeted cost of living relief, whether it is out-of-pocket health costs, taking the sting out of higher energy bills. The biggest increase in Commonwealth rent assistance in 30 years.

 

 

Link to comment
Share on other sites

  • 3 weeks later...
18
HOLA4419
  • 3 weeks later...
19
HOLA4420
20
HOLA4421
21
HOLA4422
2 hours ago, Gemma Rose said:

Good to know that a pause is only a pause as the Reserve Bank of Australia raise interest rates after 4 consecutive  pauses .https://www.reuters.com/markets/rates-bonds/australias-central-bank-raises-rates-12-year-high-tempers-hawkish-stance-2023-11-07/

Just shows how cowardly the BOE are. Aussie inflation is both less than ours in total (5.4%) and less above their target range than ours (2-3%), yet they still raised. Combined with fiscal drag and insane tax levels, we are getting proper bent over in the UK.

Link to comment
Share on other sites

22
HOLA4423
  • 4 weeks later...
23
HOLA4424

Australia's demons decide to buy an investment property.

 

___________________

 

https://www.smh.com.au/property/news/why-property-prices-have-soared-even-when-they-weren-t-supposed-to-20231129-p5enmg.html

 

The stark graph that shows why property prices could be higher a year from now

Kate Burke
ByKate Burke
November 30, 2023 — 5.00am
Save

 

 

Share
Normal text sizeLarger text sizeVery large text size
77

View all comments

 

KEY POINTS

  • Property prices defied expectations in 2023, rebounding strongly despite rising interest rates.
  • A housing shortfall fuelled strong buyer demand for available homes, more than counteracting the cooling effect of rate hikes.
  • Domain has forecast national price rises of 5 to 7 per cent for houses and 2 to 5 per cent for units next year.
 
 
Listen to this article
5 min
 

The gap between housing supply and demand that has helped propel property prices higher this year could keep putting pressure on buyers into 2024.

House prices have soared back towards record highs and are forecast to be higher still in a year’s time even if they wobble between now and then, as a housing supply shortage fuels strong demand despite rising interest rates.

 

Property prices were expected to keep falling while interest rates climbed, but they didn’t.

Property prices were expected to keep falling while interest rates climbed, but they didn’t.CREDIT:PETER RAE

House prices nationally have fully recovered from the short-lived market downturn of 2022, Domain’s End of Year Report released on Thursday shows, despite 13 cash rate hikes and a cost of living crisis that have weighed on household spending power.

Domain’s chief of research and economics Dr Nicola Powell said the market had defied expectations, rebounding strongly despite deeply pessimistic consumer sentiment and rising rates, which slashed buyer borrowing power by about 30 per cent.

 

One key reason was a housing supply shortage decades in the making, Powell said, as new home completions failed to keep pace with population growth and adapt to the rise in smaller households, which have both driven up housing demand.

“That existing housing shortfall has collided in 2023 with strong population growth, a constrained construction sector … and the tightest rental market on record,” she said.

These factors, along with a drop-off in sellers which drove up competition for properties, ultimately put a floor under price falls, and resulted in a strong recovery, she said.

Median house prices in Sydney are 0.4 per cent below their peak, while prices in Brisbane, Adelaide, Perth and regional Australia have reached or returned to a peak. Melbourne is still down 4.1 per cent, as are Canberra (-10.6), Hobart (-6.8) and Darwin (-4.3).

 
 

Unit prices are at a high in Brisbane, but were down 2.7 per cent in Sydney, 5.5 per cent in Melbourne and more than 9 per cent in Canberra, Perth and Hobart.

RELATED ARTICLE

 

Sydney suburbs with the largest home deposits

Powell predicts house prices across the combined capital cities to lift another 6 per cent to 8 per cent next year, and regional prices to be 2 to 5 per cent higher by year’s end. Sydney is earmarked for the strongest growth at 7 to 9 per cent, while forecasts are softest for Melbourne and Hobart, at 2 to 4 per cent growth.

The unit market is forecast to be more subdued, expected to end the year up to 3 per cent higher across the capitals and regional markets.

“We are expecting the undersupply of housing to continue to trump [the impact of] higher interest rates. There is the prospect of another rate hike early next year though and a cut late next year, so we could see prices wobble [but end the year up].”

 

Housing Industry Association senior economist Tom Devitt said it was incredible to see prices increasing amid the sharpest rate rises in a generation.

“[Prices] fell for a year and started to pick up again because of the migration [catch up], but even without migration, there was an underlying shortage [of homes],” he said.

The shortage was exacerbated during the pandemic, when the construction industry faced a perfect storm: an explosion in new housing demand that resulted in material and labour constraints – which blew out construction timeframes and cost – but were now easing.

Devitt expected an increase in homes for sale, off the back of stronger prices, would moderate price growth going forward. However, the mismatch between supply and demand – with dwelling approvals at about a decade low – would continue to put upward pressure on prices.

 

“We think price gains will start to slow, but there are forces moving in both directions,” he said.

RELATED ARTICLE

 

Will house prices keep rising?

Devitt noted tax, regulatory and planning changes would be required to ensure enough new, affordable housing was being built, and higher and medium-density housing would be key.

Major banks are predicting modest price rises in the major capitals next year, and interest rate cuts in late 2024. But some dissent has emerged and a recent forecast by prominent research house SQM predicts price falls in Sydney and Melbourne next year.

Independent economist Stephen Koukoulas said there was evidence the market rebound was petering out, with price growth slowing, and expected it could turn negative in 2024.

 

“I’m not predicting a crash, but prices will probably be flat to slightly down next year, say 3 per cent nationally, the reason being that the labour market is starting to soften,” he said.

Koukoulas expects the unemployment rate could reach up to 4.5 per cent next year, which would weaken demand for housing, and put greater pressure on those already struggling to meet higher mortgage repayments, potentially leading to an uptick in distressed listings. Affordability constraints would also weigh on buyer demand.

The greatest weakness was tipped for Sydney and Melbourne where prices could drop up to 6 per cent.

Link to comment
Share on other sites

  • 4 weeks later...
24
HOLA4425

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...

Important Information