Aust residential property values rise 1.1%
- Thread starter BoatBoy
- Start date
This is a hedonic index, so in theory should adjust for the skew in sales mix.
Hi BB,
Yep, nice isn't it.
Only a little tickle up at this stage but definately not another leg down in prices.
Here's another article out today covering the RBA's forward view on house prices being well supported:
Your house is safe: RBA
Does this mean that Steve Keen is now going to climb Mount Kosciuszko wearing the "I got it wrong" T-Shirt? i.e. What's the signal that the market drops have stopped and didn't reach his 20% bet? Is it a turn "up" in prices? Surely a cumulative drop of 3% is clearly well below his 40% projections and 20% bet...
Not time to pop the champagne just yet IMHO, but at least it should mitigate against some of the massive misinformation perpetrated by the "end of the world" fear-mongers. Whew, that was a mouthful!
Cheers,
Michael
Yep, nice isn't it.
Only a little tickle up at this stage but definately not another leg down in prices.Here's another article out today covering the RBA's forward view on house prices being well supported:
Your house is safe: RBA
Does this mean that Steve Keen is now going to climb Mount Kosciuszko wearing the "I got it wrong" T-Shirt? i.e. What's the signal that the market drops have stopped and didn't reach his 20% bet? Is it a turn "up" in prices? Surely a cumulative drop of 3% is clearly well below his 40% projections and 20% bet...
Not time to pop the champagne just yet IMHO, but at least it should mitigate against some of the massive misinformation perpetrated by the "end of the world" fear-mongers. Whew, that was a mouthful!
Cheers,
Michael
.....but,as we all know Dave.....no-one is actually rich enough to own "Australian residential property", so the 1.1% carries a margin of error of about 3 or 4%.
What they actually own is :
Unit 3 / 17 Berrigan Drive Hurstville NSW..........down 2.7%
24 Hill St Coorparoo QLD..............................up 5.6%
49 Review Crescent Glengowrie SA...............up 17.3%
What exactly can anyone take from the 1.1% figure quoted ??
Individual title deeds vs "the market". One makes you wealthy, and the other makes you "informed".
What they actually own is :
Unit 3 / 17 Berrigan Drive Hurstville NSW..........down 2.7%
24 Hill St Coorparoo QLD..............................up 5.6%
49 Review Crescent Glengowrie SA...............up 17.3%
What exactly can anyone take from the 1.1% figure quoted ??
Individual title deeds vs "the market". One makes you wealthy, and the other makes you "informed".
Juxtaposition
Low interest rates help ease mortgage stresses
THE number of Australian families facing mortgage stress has fallen by 300,000 from its peak last August as lower interest rates and government stimulus packages ease the pressure on households.
...
The improvement in home values in 2009 following modest 3 per cent falls in 2008 highlights the absurdity of the sensationalist predictions by one or two economists in 2008 that prices would fall by 30-40 per cent...
US home prices drop 19pc: Case-Shiller index
...The problem for real estate remains the huge overhang of inventory. Demand, though rising, remains too weak to clear out the number of homes on the market.
Until the overhang is whittled down, prices won't stabilise. And since the economy's problems began with housing's implosion, falling home prices will complicate Washington's effort to end the recession and fix the financial markets.
According to the January S&P/Case-Shiller report, the 10-city home price index dropped 19.4 per cent from a year ago; the 20-city home price index plunged 19 per cent. Since peaking in the second quarter of 2006, the 10-city and 20-city indexes are down 30.2 per cent and 29.1 per cent, respectively...
Low interest rates help ease mortgage stresses
THE number of Australian families facing mortgage stress has fallen by 300,000 from its peak last August as lower interest rates and government stimulus packages ease the pressure on households.
...
The improvement in home values in 2009 following modest 3 per cent falls in 2008 highlights the absurdity of the sensationalist predictions by one or two economists in 2008 that prices would fall by 30-40 per cent...
US home prices drop 19pc: Case-Shiller index
...The problem for real estate remains the huge overhang of inventory. Demand, though rising, remains too weak to clear out the number of homes on the market.
Until the overhang is whittled down, prices won't stabilise. And since the economy's problems began with housing's implosion, falling home prices will complicate Washington's effort to end the recession and fix the financial markets.
According to the January S&P/Case-Shiller report, the 10-city home price index dropped 19.4 per cent from a year ago; the 20-city home price index plunged 19 per cent. Since peaking in the second quarter of 2006, the 10-city and 20-city indexes are down 30.2 per cent and 29.1 per cent, respectively...
Attachments
1.1%... wheres this guy from and what does he think he knows about property?
as is 1% is going to save the world....
as if 3.3% drop is going to end it....
as if 3.3% drop is going to end it....
Precisely!
To paraphrise: This is "no news at all". But in the current environment where some forecasters are predicting massive falls, the old adage of "no news is good news" applies.
i.e. The absence of falls is in itself fantastic news!
Cheers,
Michael
That is a good point,
probably there is more to say about it:
The FHB now are in a much higher number and because the FHBgrant they have more money. Also new build homes are not going to get cheaper with the AU$ going down like it did (material building cost going up).
I believe builders will not jump of joy to get a 1% rise in homes when you get the AU$ dropping the way it did and FHgrant big boost.
Similar threads
