Looks like house prices are on the up...

[pieman]

Discuss

 

[tambourineman]

Discuss

No........

 

[The Fence]

Why no...?

 

[catsteve]

looks like a graph/chart to me. i wonder where it came from?

 

[DaveM]

I can say with utter certainty that the graph above has lines on it. And the lines are different colours.

However I am sure there is a panel of 5 economists out there who would come up with 5 different interpretations of the lines, including they are going down, they are parallel, they are both purple, and there are no lines at all.

 

[pieman]

The ability of households to pay for house expense has a large baring on overall price growth. Whenever that red line (ability to service mortgages) goes to far above the median house price, there is an increase in median values, like for instance 1998+
Obviously lack of confidence has an impact (like now) but sooner or later prices rise

 

[hobo-jo]

Interest rates can keep heading lower for the next 30 years too, soon enough the banks will be paying us to take on debt.

 

[datto]

Yeah, and we will pay the banks interest for holding our deposits

 

[tambourineman]

Why no...?

the chart came from australian independent media? sounds and looks like something far from independent.

 

[Angel]

Alan Kohler referred to it on TV on the weekend, with the same sort of interpretation as Pieman's comments.

 

[MTR]

The ability of households to pay for house expense has a large baring on overall price growth. Whenever that red line (ability to service mortgages) goes to far above the median house price, there is an increase in median values, like for instance 1998+
Obviously lack of confidence has an impact (like now) but sooner or later prices rise

I think market sentiment is very strong at the moment, I don't see lack of confidence in the market today. Just read the papers reporting on a daily basis on various property markets around Australia rising.

 

[Aaron_C]

I think market sentiment is very strong at the moment, I don't see lack of confidence in the market today. Just read the papers reporting on a daily basis on various property markets around Australia rising.

Block of land I bought for $1,000 per sqm in Box Hill in September 2012. In the neighbouring higher density zoning a block of land just sold for $4,000 per sqm that is the same size as mine. Prices are moving in selected pockets.

 

[MTR]

Block of land I bought for $1,000 per sqm in Box Hill in September 2012. In the neighbouring higher density zoning a block of land just sold for $4,000 per sqm that is the same size as mine. Prices are moving in selected pockets.

Yes, I agree it is selected pockets in Melb for sure.

Oh well, you brought the bacon home this time

 

[pieman]

Interest rates can keep heading lower for the next 30 years too, soon enough the banks will be paying us to take on debt.

Still renting?
Gold off 40+% from peak I see..ouch. Looks like keen got his asset class wrong

 

[turk]

Interest rates can keep heading lower for the next 30 years too, soon enough the banks will be paying us to take on debt.

Interest rates at their present setting would be supporting the market.

Housing affordability at decade high

http://www.smh.com.au/business/property/housing-affordability-at-decade-high-20131127-2y99g.html

 

[hobo-jo]

Gold off 40+% from peak

Suggest you redo the math on that one, Pienstein

 

[Aaron Sice]

Still renting?
Gold off 40+% from peak I see..ouch. Looks like keen got his asset class wrong

Was there any need for this antagonistic horse sheet?

 

[tambourineman]

Interest rates at their present setting would be supporting the market.

Housing affordability at decade high

http://www.smh.com.au/business/property/housing-affordability-at-decade-high-20131127-2y99g.html

According to the HIA and Commonwealth Bank - hardly an independent source.

 

[turk]

According to the HIA and Commonwealth Bank - hardly an independent source.

Are you capable of pointing out where these figures are incorrect and explaining why the presently low interest rates would not be supporting the market?

Perhaps you're limited to simple 1 line answers.

 

[pieman]

Was there any need for this antagonistic horse sheet?

No need, sorry hobo although I know you have a thick skin