repayments to rise by up to $372 a month.

thanks for that. mine is on fixed and has done me well. i should find out for how long more its fixed and pay as much as i can i guess.

francine.
 
Reserve Bank governor Glenn Stevens should be warned in return that house prices are below normal and will move "a good deal north" as the economy regains strength.
 
Reserve Bank governor Glenn Stevens should be warned in return that house prices are below normal and will move "a good deal north" as the economy regains strength.
I'm not sure what you mean here Ausprop...are you suggesting that houses are undervalued and prices will move north as interest rates do? If so, exactly how are you calculating houses are "below normal"?

If anything I would expect increasing interest rates to put further strain on the already over leveraged housing market & households, causing prices to fall, not rise.
 
If anything I would expect increasing interest rates to put further strain on the already over leveraged housing market & households, causing prices to fall, not rise.

Rising interest rates do not necessarily dampen property prices. If there is an oversupply of property then prices will fall or stagnate. At the moment in Melbourne there is an undersupply of properties. Prices are rising rapidly, even with the prospect of rising interest rates in the not too distant future. :eek:
 
I'm not sure what you mean here Ausprop...are you suggesting that houses are undervalued and prices will move north as interest rates do? If so, exactly how are you calculating houses are "below normal"?

If anything I would expect increasing interest rates to put further strain on the already over leveraged housing market & households, causing prices to fall, not rise.

my logic is simple... housing has been damaged by the weak economy. Stevens says that if the economy strengthens he will raise interest rates, meaning house prices will move in tandem with the improving economy.
 
As I understand it, house prices did not move in tandem with the improving economy after the early 90s recession, but did boom some years later. I would be genuinely surprised to see house prices rise significantly in the next 5 years. I don't think the economy will be on the mend anytime soon either.
 
there are so many factors to consider, such as, were developers cut down during the 90s recession with the result of eliminating supply? was our economy as flexible? unemployment rates? population growth? China entering such a dramatic era of expansion? since the 90s we have nearly 20 years of resource depletion and the north west shelf... well I think Woodside was about 2 bucks back then. The resources boom may be so dramatic that we will be back to 2006 style skills shortages etc
 
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