And falling fast across the country
https://www.afr.com/property/residential/sydney-house-prices…
https://www.abc.net.au/news/2022-07-26/sydney-news-house-pri…
Forecast of more than 2% of interest rate rises still to come (so prices will fall even faster)
https://www.asx.com.au/data/trt/ib_expectation_curve_graph.p…
https://www.corelogic.com.au/our-data/corelogic-indices
Spriuk on with your economic ignorance property spruikers!!
Do they own, rent or have a portfolio of investment properties?
Oh no, not another one of these again.
It'll be what it'll be.
Although many of us want this to be true so the housing market gets some kind of decent reset…but stop dreaming!
Well everyone agrees that property prices had fastest price surge in 2020-2021 period too.
Kicking out so many first home buyer's affordability range
I don't think the politicians will let their investment properties drop in value. I bet they announce a policy any day now to stop the decline.
As they did in the last 25 years.
A four week period doesnt tell you very much. For example, maybe higher end houses have been taken off the market disproportionately to cheaper houses.
But, as others have mentioned, while the bubble may have popped, the trend over the last few years is still very upwards. For good or bad
"A four week period doesnt tell you very much.'
Incorrect, when taken in the context of the constant decline since the May interest rate rise
But that isn't the only factor at play, is it?
Its the whopping big factor!
@Boogerman: It may be, it may be one of a few factors. Unless you have some evidence of the direct correlation.
@GG57: https://www.corelogic.com.au/our-data/corelogic-indices
Click on 'Daily Back Series' & look at the slope of the city's specific graph relative to the day of each month's rate rise
Oh no!
Anyway-
One needs to look at property a long term hold and not look at short term influences.
In the last 25 years our house has increased at a compound 6.6% increase per annum
The key point is 6.6% per annum is much greater than real wage increases.
And now we're at an inflection point.
Could be a good time to buy.
LOL.
Why did house owners never complained when it went up in value.? It would be nice to think of less fortunate and low income earners as well some times so they can also be owners. People who though interest could only and brought properties are at risk . Morally housing should be a necessity( and hence affordable) not an investment vehicle
People like you is what I was talking about. Do not care about anything other than own wealth
It won't really help low income earners if property prices drop, they are dropping because loan affordability is dropping with the rising interest rates. The only people it helps are those with big wads of cash who don't need loans.
I was not talking about 10% or 20% drop. It was affordable for all during 80's. If you apply basic inflation figures to those valued you should be able to get an approximate house price fair value. If it is still not attainable for some there should be social housing
All I said is propping up house prices to keep GDP strong is a wrong way to do it. It would be nice to keep it that for future generations too
It was affordable for all during 80's.
That just isnt true. It was pretty hard in the 80s to buy a house. It was even harder to get a loan. No it wasnt as hard as now, but it was a long long way from 'affordable for all'
@dtc: It should not be looked how hard it was or how high the interest rates are
It is how much times your avg. yearly income in Auz people paid for a home and how much time it took to save for a deposit for mortgage. Also remember people had job security back then
@treekangagaroo: Job security in the 1980's: unemployment went to ~10% during that decade before falling back to ~6%
A lot of factors in play both back then and now.
I'm a home owner and would love it if house prices dropped 50% across the board because then I could afford a bigger house on the same loan repayment. Economics is tricky and often counter-intuitive.
No you wouldn't, if you sold your house to free up the cash you would get a reduced amount for it proportional to how much smaller it is (if in same area) or in how much worse an area it is (if in a different area). If you buy another house in addition to the one you own obviously your home loan repayments will have to increase, even with a 50% price decrease no houses are going to be free.
@Quantumcat: that isnt how the maths works
Say your current home is worth $800k and you want to buy a home for $1.5m. At the moment, if you sell your home you need to find another $700k to upgrade
If prices drop 50%, you sell your home for $400k and buy the other home for $750k. So you only need to find another $350k to upgrade. Way ahead.
@dtc: If you owned your home outright, you had a $0 mortgage payment, so how exactly are you upgrading for the same mortgage payment if the house is not free? Which is what the person I replied to said.
It isn't rocket science that if house prices go down then buying a house is cheaper. But that isn't what the other person said.
Great so housing is more affordable now! Except…….my borrowing capacity has also reduced
If you wait & buy at the bottom of the market forecast to be around June 2024, interest rates will in the process of being cut again, so your repayments will drop & your house will increase in value simultaneously
Will I make my money back from listening to the market forecast for property to drop 50% in Mar 2020?
False equivalence. Interest rates were cut to 0.1%
They are currently in the process of being hiked to 3.6% (3500% higher than November 2020)
https://www.asx.com.au/data/trt/ib_expectation_curve_graph.p…
@Boogerman: So should I buy or sell the 3 bond futures today to pay for my house deposit in June 2024?
@star-ggg: Investment in near term production lithium miners.
Or cut back on all expenses & save harder for a deposit
I am ready to buy when prices drop.
But I am not counting on it.
Unless you got the time machine, just a few years back would be enough, otherwise no chance lol
I agree. Australians are very good at holding on. I don't think prices will plummet at all.
I don't think prices will plummet at all.
Wanna bet?
@Bystander: Do you have a house to bet on?
Just put the facts,
* We got lower unemployment
* High demand for rental
* Not the best public transport and everyone want to be in CBD
* Collapse of building companies
* High demand for tradies
@boomramada: If the RBA does raise rates to over 3% then yeah, prices will plummet. My rule of thumb is that it can take up to 18 months for the full effect of interest rate changes to be priced into the market. As for your dot points, they won't negate the result of higher interest rates.
@Bystander: Of course there will be a dip correspond to the rate rise. Then market will adjust it self for demand. Fuel prices and other shortages outway the affect of rates rise. I'm not a economists but looking at the all the current events, there won't be a big dip or market crash as most think.
there won't be a big dip
Well if the market is correct regarding interest rates we won't have long to wait.
See you here next year.
everyone want to be in CBD
No one wants to be in the CBD. No one wants to go into the office, let alone live near empty offices.
@Bystander: LOL. Prices have already fallen & are falling faster with each monthly interest rate rise.
Sometimes I read OZB comment sections purely as a schadenfreudesque need for reminding of how dumb society is
@brendanm: And Brisbane
So together the overwhelmingly majority of the capital city population & more than half the entire nation's population
About that bet….
Lets be honest.
Everyone knew this was coming.
Lets be honest & look at the comment section…
The sky is falling!
Sydney House Prices: The Fastest Rate of Decline in More than 40 Years
Come back when the headline changes to "Prices decline to that of 40 years ago" still crazy prices. Only people caught out are the ones who shouldn't have bought because they couldn't afford it. Over the next 20 - 40 years still going to go up if not retain value.
Check your super decline, you'll know what a good decline looks like.
I doubt anyone who owns investment properties in Sydney would waste their life on OZB.
You'd be wrong
in two years time get ready for distressed sales made by mortgagee as they are unable to recover their instalments.
in 2003 - 5 there was a huge property boom and everyone was in the property market, the auction was crazy crowd, and there was FOMO to get into race.
After the GFC when the interest rates shoot to more than 12.5% by online loan companies many got broke and property demand fizzle out to such an extent that they went back almost 30 to 40% drop from their peak.
This is bound to happen and best is if you are unable to pay the mortgage get your loan fixed or get the property out before it drops too deep.
If you have any apartments you will be the most affected category as there will be huge sales of apartments in the same building and the buyer is on buffet table on which apartment to buy from same complex or area.
The market corrected shortly after. This would be no exception this time around. HODL Is the key peeps.
I don't believe in the boogerman..