What is the current public sentiment towards the housing market?

M

murrayo

Hi,

this thread started in Ireland 5th July 2006 and ran until 8th Nov 2006 with thousands of replies, literally. At the time , the moment you posted, there was an avalanche of (mainly) very educated responses;

http://www.askaboutmoney.com/showthread.php?t=31710

I was there at the time, and the thread was the 'talk of the town' for months (with 250,000+ views/hits I beleive)

Anyway, It seems that the VI's got hold of the people who run the site and got them to close the thread as the negetive sentiment (opinions/predictions that have since come true in Ireland) was hitting their RE business pretty hard.

So, there was a website to discuss all things financial - that had banned discussion on the hottest topic of them all at the time
- the Housing Boom/bubble. Also, some of the more opinionated posters were banned from the site altogether (ironically - looking back, they now seem to be the most accurate!)

From this, another website was born ; www.thepropertypin.com (the pin that bursts the bubble.... get it ??!:))

And they carried it on , to this day.... http://www.thepropertypin.com/viewtopic.php?f=4&t=264 with 2600+ posts.

So, I thought I would ask the same question here, based on what you hear at the office, from friends, out and about ; In your opinion ;

What is the current public sentiment towards the housing market?
 
That's a great question and i'll answer with:

It doesn't matter what the market sentiment is at the moment, not many have the money to do much anyway. Swimming in debt.

As for me, I'm cashed up, no debt and i'm not buying a thing. Nuff said.
 
Murray

People are scared, companies are scared, governments are scared.

The recent cut of interest rates was good for people with a mortgage and it will also help increase our spending (had cake with my coffee yesterday ;) ) but the bad global economic news makes us all feel bad.

I think for our sentiment to change we would need the global economic turmoil has to stop and we also need some drastic interest rate cuts.

Cheers
 
Last edited:
Sentiment here is great. Lots of building, lots of new jobs, lots of new businesses, lots of new people, all is blue skies and kittens and happiness.

I should point out that when I went looking through the houses for sale on the weekend that over half the houses were listed between $130k and $190k and median household income is around $50k, so its still quite cheap where I am.
 
As the addage goes, buy your straw hats in the winter, its winter, im buying, and summer is soon....

well its spring, even closer to summer... if you follow my drift...
 
I think sentiment is exceptionally bad right now. That could change in heartbeat if the markets recover. But as long as they keep spiralling down and the AUD keeps tunnelling...
 
Looks like sentiment may be picking up towards housing in the uk. According to this report,

http://www.timesonline.co.uk/tol/money/property_and_mortgages/article4916890.ece

Investors who have lost faith in the banking system are turning to property as a safe haven for their cash.

Estate agents have identified a growth in interest from cash buyers, who want something tangible for their money rather than depositing it with banks they no longer trust.

The trend is emerging in all corners of the property market, according to one nationwide agent, from high-end mews houses in Knightsbridge to dilapidated two-up two-downs in the East Midlands.


Ok, so its not here, but I found it interesting.
 
cashed up. .been on the market for several months... can clearly see a downward trend. went to 6 auctions in the last 2 weeks... not one sold...

won't buy unless market down >35 percent in good suburbs. .. Australia is the "biggest" bubble now in the world. .. affordability is twice is at where it should be.
 
who cares what sentiment is. The banks are getting increasingly into a position where they cannot lend. We are going to be where the US is in about 8 months time.
 
sphinx said:
won't buy unless market down >35 percent in good suburbs. .. Australia is the "biggest" bubble now in the world. .. affordability is twice is at where it should be.
Click to expand...


You want your cake and eat it too? Somehow you might be waiting a while for them auctioned properties in good suburbs in Syd to fall 35%. The expats earning USD just increased their buying power by 30% in the last 2 months. And there are droves looking to come home to spend their hard earned money but not on median priced homes. The only thing probably holding them back at the moment is the lack of jobs. If its good sububrs, the same will happen in the last slow down after 03, sellers go on strike and create a lack of supply. Prices just stood still but well priced properties will sell easily
 
I continue to be confident that because the US had its house price crash before its share crash we will only see the share crash without the house price crash.

Sentiment will turn in the US as I've just seen on Channel 602 in the last hour. Just saw the DJI go positive and heard the roar after it dropped 700 points in early trade.

Combination of growing world sentiment as the stock markets bottom out, combined with drops in rates here and a coordinated international effort to improve financial regulations and liquidity will see us dodge the house crash.

I don't however see prices rising here until inflation, wages and lower interest rates combine to gradually make housing more affordable. I'm expecting 2 years of 0 growth but better yields and better affordability.

Now that the media are getting sick of writing about the economy I wonder what will take the focus on Aussie front pages. US will obviously be their election. Melbourne cup is still a few weeks away. Maybe we will get back to talking about the ETS and global warming.
 
MarkandTina said:
. Maybe we will get back to talking about the ETS and global warming.
Click to expand...


Emmisions trading will now need a rethink. It was always only going to work in a strong economy in a resource boom. It was always a tax on exporters, especially mining and agriculture. It will break the economy if it goes ahead now.

See ya's.
 
Yes, people are scared and worried about finance in general. The headlines about equity markets crashing etc.

But I don't think most are scared that there house is about to plummet in value - a little concern maybe, but not full on scared. That's my take of where I live anyway.


BV said:
Murray

People are scared, companies are scared, governments are scared.

The recent cut of interest rates was good for people with a mortgage and it will also help increase our spending (had cake with my coffee yesterday ;) ) but the bad global economic news makes us all feel bad.

I think for our sentiment to change we would need the global economic turmoil has to stop and we also need some drastic interest rate cuts.

Cheers
Click to expand...
 
One would think that the sharemarket woes would flow onto increased investment in other asset classes such as property however due to the massive losses investors may not be in a position to invest in property for sometime.

There are bargains to be had in property however with the current overall rate of return still low I do not see the any strong buy signals. Certainly when the rates drop and some stability returns to the overall economy more opportunities will present themselves.

If you have the money and you can carry the losses all good. If you find a niche that is giving good returns all the best to you, but for me I'll sit on the sidelines for a little longer.
 
I would like to see emission trading go ahead and spur on new industries in renewables.
There is a serious reshuffling of cards going on now and the money waiting on the sides for the bottom will want to invest in stable long term investments, the tech bubble burst and now the financials bubble burst, there has to be new and inovative markets to drive wealth, renewables should play a part in that.
 
s_t said:
Yes, people are scared and worried about finance in general.
But I don't think most are scared that their house is about to plummet in value - a little concern maybe, but not full on scared.
Click to expand...

I agree, I don't believe that the financial problems or problems in the share markets will have much impact on property.

Also, if interest rates fall further (and it is predicted that they will fall), we are likely to see a natural floor on property prices and a rebound in areas which already had price corrections or have stagnated since 2004.

cheers
 
Chatto said:
I would like to see emission trading go ahead and spur on new industries in renewables.
There is a serious reshuffling of cards going on now and the money waiting on the sides for the bottom will want to invest in stable long term investments, the tech bubble burst and now the financials bubble burst, there has to be new and inovative markets to drive wealth, renewables should play a part in that.
Click to expand...

Sometimes I just love the tone of a post that has a wonderful wisdom about it....kudos to you Chatto....never look back! :)

Onward we march.....this is also a relevant post in the Why do the Rich get Richer thread.....they move onwards, innovatively.;)
 
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