It seems prices are going down a bit.But depends on the houses though.
Any thoughts on this?
Any thoughts on this?
When will house prices go down?
- Thread starter naijacoder
- Start date
I would say this has already started in most areas to some degree.But Australia is a big place and it varies area to area. I believe the majority of australia will see some kind of correction over the next year. That correction may be a stabilization of prices or a significant drop. Our area has been flat since around 2003 and has actually declind a little since then so i believe there is not much room for massive drops from current prices.Other areas may be in a bubble situation and have more to lose. And of coarse there are other areas that through things like migration,Infrastucture,mining and local economy.Those areas may actually see increases.I would say that it is probably a good time to be very picky if you intend to buy.
Here in Darwin experts are predicting a 20% rise in housing over the next two years so no drops here and still great returns.
Its happening already.
You've got to stop reading the headlines and listening to the media experts. Get out in your own market and look at what's going on.
Example from my market: My neighbour, who's an REA himself and a mate listed his house 6 months ago and got an offer of $800K. He had two other interested parties that were talking about $850K odd offers so he held off. Needless to say, the other two offers walked so he reverted to the original $800K offer. But now that $800K offer was spooked so walked too. He kept listing and got another offer recently for $755K which he accepted. It too got spooked and walked. He's now talking of accepting offers over $730K because he's gone and bought another place around the corner as a do-it-upper for $650K and is funding $1.3M in debt.
In his own comments he broke three of the golden rules of property sales:
1. Never sell your own property as you get too emotionally involved;
2. Always accept the first offer as in 90% of the cases it will be the highest offer you get; and
3. Always sell before you buy as now he's stuck funding two properties which he can't afford to hold in a falling market with rising interest rates.
He'll sell out and still have a nice house with potential, but probably $100K worse off than if he'd accepted that $800K offer on the spot 6 months ago.
I think the markets are going to remain subdued for at least another 12 months, probably 24. In that time interest rates are going to keep sneaking up. I expect WBC and NAB to go up by 10-15 points this week to match the other majors now that CBA and ANZ have gone. And I don't expect that to be the end of it with the rubbish happening in the US with Freddie and Fannie.
Fear and greed moves markets and today fear is well and truly in control. It will take a couple of years for fear to be replaced with greed and a lot of pain in the middle. When all hope is lost, just hold on for all you're worth as there definately will be positive times ahead, but in the pit of despair they're hard to envisage.
Cheers,
Michael.
You've got to stop reading the headlines and listening to the media experts. Get out in your own market and look at what's going on.
Example from my market: My neighbour, who's an REA himself and a mate listed his house 6 months ago and got an offer of $800K. He had two other interested parties that were talking about $850K odd offers so he held off. Needless to say, the other two offers walked so he reverted to the original $800K offer. But now that $800K offer was spooked so walked too. He kept listing and got another offer recently for $755K which he accepted. It too got spooked and walked. He's now talking of accepting offers over $730K because he's gone and bought another place around the corner as a do-it-upper for $650K and is funding $1.3M in debt.
In his own comments he broke three of the golden rules of property sales:
1. Never sell your own property as you get too emotionally involved;
2. Always accept the first offer as in 90% of the cases it will be the highest offer you get; and
3. Always sell before you buy as now he's stuck funding two properties which he can't afford to hold in a falling market with rising interest rates.
He'll sell out and still have a nice house with potential, but probably $100K worse off than if he'd accepted that $800K offer on the spot 6 months ago.
I think the markets are going to remain subdued for at least another 12 months, probably 24. In that time interest rates are going to keep sneaking up. I expect WBC and NAB to go up by 10-15 points this week to match the other majors now that CBA and ANZ have gone. And I don't expect that to be the end of it with the rubbish happening in the US with Freddie and Fannie.
Fear and greed moves markets and today fear is well and truly in control. It will take a couple of years for fear to be replaced with greed and a lot of pain in the middle. When all hope is lost, just hold on for all you're worth as there definately will be positive times ahead, but in the pit of despair they're hard to envisage.
Cheers,
Michael.
fear of recession is gripping the nation, property does not do well in recession.
tempering the damage is the fact that our rates are high on an international comparison, tho dropping rates in the US has not spared them. The govt does hold a large surplus which can provide a fiscal stimulus but the effectiveness of that?
tempering the damage is the fact that our rates are high on an international comparison, tho dropping rates in the US has not spared them. The govt does hold a large surplus which can provide a fiscal stimulus but the effectiveness of that?
The only thing saving this country from a full blown recession is a commodities boom. Its pure dumb luck that China, India are going through a developmental phase. Once in a lifetime coincidence i think.
I've said it before, we are going to have a big hangover after a great party. If you are not prepared for it (too much debt), better reach for the panadol.
I've said it before, we are going to have a big hangover after a great party. If you are not prepared for it (too much debt), better reach for the panadol.
