The prompt reply from the banking industry is a sign or nervousness I would say...
see article from today's herald.
http://www.smh.com.au/news/national/banks-say-house-prices-wont-fall/2005/11/05/1130823439628.html
Banks say house prices won't tumble
Major banks have rejected statements by home loan provider John Symond that the real-estate market will continue to fall.
With the Aussie Home Loans boss painting a bleak picture of the property market, predicting a further 10 per cent fall in prices in the coming year, Westpac, the Commonwealth Bank and ANZ countered by saying they did not anticipate any major change.
"I think it's a pretty flat market," the Commonwealth's general manager of retail products, Geoff Austin, said. "There's nothing we are seeing to suggest that it is going to change in the next six to 12 months."
In an interview published yesterday, Mr Symond warned consumers to get out of the real-estate market.
He said the market was yet to bottom, and people should sell now to avoid major losses.
Mr Austin said prices in Sydney fell five to 10 per cent after topping out in 2004, but the bank was now seeing a normal spring pick-up in lending activity and volume.
"What we have seen is a pretty flat market in terms of prices in Sydney," Mr Austin added.
"There's no huge pent-up demand, but you don't have a huge crush of sellers either."
ANZ spokesman Paul Edwards said it did not appear there was going to be a sudden change in prices. "The market is certainly softer than it was two years ago, but overall it seems to have steadied rather than ... falling in any sort of dramatic fashion," he said.
David Lording from Westpac added: "There's been an orderly correction in the housing market. We believe it will remain reasonably stable in most areas. Our bad debts are at record lows. That means people are able to meet their repayments."
Meanwhile, houses in Sydney's west and south-west are selling 10 times faster than those elsewhere in the city. In the past six months, homes in areas such as Cranebrook and Fairfield have spent on average less than a fortnight on the market before being snapped up.
Australian Property Monitors statistics show that property in these areas takes only about 11 days to sell, compared with Sydney's 89-day average. Also on APM's list of top five suburbs for the shortest time on the market were Chester Hill and Cambridge Gardens, both with an average of 14 days, and Waverton, on the lower North Shore, with 18 days.
APM's Louis Christopher said the results were good news for vendors but not a sign that people should start putting up their prices.
"Normally when you see a reduction of days on the market, vendors have been willing to meet the market and buyer activity is starting to pick up," Mr Christopher said. "West and south-west areas have experienced a downturn just like the rest of Sydney but the rate of decline hasn't been as bad."
The figures, from sales in the six months to September 30, included the average discount on the advertised price before a sale was made.
The least discounted suburbs for houses include Glenfield, Narraweena, Macquarie Park, Cranebrook and Waverton, which had experienced average discounts of between 2 and 4 per cent.
