canny man Posted March 20, 2008 Share Posted March 20, 2008 Well, well, today's Financial Review has a multi-page spread on the reality of dropping prices. At the moment it's just a few % in most areas, but drops in WA and Brisbane and other hotspots being experienced. Articles commenting that: coastal and holiday homes to take big hits as they are discretionary spend - Nusa and other areas could face 15-20% fall (Byron Bay to buck the trend) Forced sales due to margin calls in stock market impacting on market. Rents rising, prices falling, but yields still to low to attract investors Historic unaffordability -mortgage stress is the buzz Quote Link to comment Share on other sites More sharing options...
Fairies Wear Boots Posted March 20, 2008 Share Posted March 20, 2008 Better post a copy to Bardon ASAP. Quote Link to comment Share on other sites More sharing options...
Bardon Posted March 20, 2008 Share Posted March 20, 2008 Better post a copy to Bardon ASAP. they only go up Quote Link to comment Share on other sites More sharing options...
Bardon Posted March 20, 2008 Share Posted March 20, 2008 (edited) Well, well, today's Financial Review has a multi-page spread on the reality of dropping prices. At the moment it's just a few % in most areas, but drops in WA and Brisbane and other hotspots being experienced.Perth is generally accepted as having overshot at recent peak. Articles commenting that: coastal and holiday homes to take big hits as they are discretionary spend - Nusa and other areas could face 15-20% fall (Byron Bay to buck the trend) wouldn't argue with that Noosa has alwasy been high end always first to suffer Forced sales due to margin calls in stock market impacting on market. yes definetly massive hits on the ASX there is some big haircuts, short selling, margin calls but they are selling though. Rents rising, prices falling, but yields still to low to attract investors not in entry level housing they are still selling and contrarian property investors are now active in western Sydney and Melbourne as oppposed to Mum and Dad investors. Historic unaffordability -mortgage stress is the buzz High interest rates are definetly having a big impact and should dampen growth Hopefully Didn't see the Fin Review article it is a good balanced paper they usualy quote Australian Property Monitors for their housing data which again is a good source. There are other similar bodies quoting different figures such as growth dropping to 5-10% for 08. As I have always said there may not be a lot of upside in the next few years but I dont think the price of entry level housing in Brisbane will be affected and anything under 400K is still selling very quickly at the moment . Luxury stuff and holiday stuff well the value of that is a matter of opionion. I was at two auctions in Bulimba high end stuff last week both passed in but sold after auction below reserve price but still very high prices relatively speaking. Edited March 20, 2008 by Bardon Quote Link to comment Share on other sites More sharing options...
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