Dark And Forboding Clouds Hang Heavily Over Housing Market

[Realistbear]

http://www.themercury.news.com.au/common/s...255E462,00.html

Clouds hang over housing

By Nicki Bourlioufas

30may06

THE sale of new homes across Australia tumbled in April

even before interest rates rose to a five-year high in early May, a survey has revealed.

The Housing Industry Association's (HIA) New Home Sales figures released today show that the sale of new homes and units among Australia's largest builders and developers fell by 6.5 per cent in April to 9455 dwellings.

Sales of new houses dropped by 6.9 per cent while the sale of multi-unit dwellings fell by 3.8 per cent.

Australia’s peak building industry body, HIA, said the figures confirmed any housing recovery was still some way off.

Analysts expect

house prices to fall hardest in Sydney

, where the property downturn has been felt the most and housing is least unaffordable.

Given the far worse position in the UK in relation to affordability, the HPC shock wave that appears to be starting in OZ and the US should be felt in the UK to a commensurately higher degree. We have the highest house prices in the world in relation to incomes. And our employment picture is worse.....................

[Guest Winners and Losers]

The writing has been on the wall in Oz, especially Sydney since late 2003. So, it has taken 3 years (give or take) to pan out and for real talk in crash terms to begin. When did it start in UK? Give it 3 years. Unless of course it couldn't happen here FFS.

[cupidstunt]

I see prices in Perth have gone up 30% in the past year - doing "catch up" Only a question of time before a full blown crash?!