Dan_W9

The beginning of a possible Australian Housing Boom???....

http://www.opp-connect.com/positive-...ralian-market/

paulry

I wouldn't believe that for one minute

Beoz

Positive? For who? The kids coming out of university?

Panic buying at the mo. Not much holding that market up.

Amazulu

OzTennis

Seems to be a pick up according to the 2 main property markets, Sydney and Melbourne:

http://www.heraldsun.com.au/news/vic...-1226738903426

http://news.domain.com.au/domain/rea...001-2upji.html

Since the beginning of June 2012, capital city dwelling values have increased by 8.7 per cent through to the end of September 2013. from:

http://www.macrobusiness.com.au/2013...prices-rocket/

Chortlepuss

I can't imagine why anyone would think a housing boom was a good thing - apart from greedy landlords and real estate agents I suppose. Overinflated housing IMHO is the source of many of societies' evils. In the UK an attempt to force a boom is on its way with the ridiculous help to buy scheme (loans to up to 600K to first time buyers!) Reverting to mortgage lending being 3.5 * salary like it was when I started out would be a sensible way to bring down house prices to affordable levels. I say this as a home owner who has practically paid off my mortgage - I'd rather my house didn't increase in value if it meant others could afford to get on the property ladder

Lou_Diamond_Phillips

*applauds wildly*

I read a good quote on rising house prices the other month,

'Housing is the only basic human need for which rapid price rises are met with celebration rather than protest'

OzTennis

But a slumbering property market is often associated with a slumbering economy - people reluctant to borrow and buy even when interest rates are low, people not confident about retaining employment, sellers losing equity on their main asset etc. It's a Catch 22 situation in many ways - you want prices to fall so 1st time buyers can afford to buy but do you want all that goes with that? For a lot of people a recovering property market is a good thing as well.

Financial institutions voluntarily cutting back severely on their levels of lending is not going to happen either. Turkeys don't vote for Christmas and I don't see the Government forcing the institutions to lend less by imposing 3.5x salary or whatever. That makes it harder for 1st time buyers to borrow if prices don't plummet as well.

Dan_W9

Not only do I agree with this point, but it is also a fact! With the property market looking stronger, it has had a knock on effect and the country's wealth has risen since.

Australia now has the highest median wealth in the world!!!

Whilst for some people the news might not be great, for most it is welcome and not just from 'Landlords and Estate Agents', but for people that are looking to invest or move to Australia.

There is of course a lot of skepticism in the 'Help to Buy' scheme in the UK, but so far so good. It has helped Graduates and First time buyers get on the property ladder and demand has been good for mortgages since the scheme began. This news has also helped the UK's economy, so it proves the link does exist between the Real Estate market and a country's economy.

paulry

Well said. This is where governments should over time ratchet down lending multiples back to a sensible 3.5 times annual income. In the same kind of way that fuel prices have been steadily ratcheted up in the UK. Very unlikely to happen though because there's too many conflicts of interest (pardon the pun).

Other beneficiaries of these property booms include bwankers and forex dealers.

Bermudashorts

When has the Australian property market not been buoyant in recent years? I have been here for 3.5 years and it hasn't been slumbering in that time. I just don't get why you think it needs "positive signs". The UK housing market is a completely different matter, it has been the doldrums for quite a while.

Tramps_mate

I need the AUD to strengthen a bit more to bring my dollars back to the UK!

Beoz

The whole highest median wealth in the world is a big worry. Obviously most of this is tied up in property and an exchange rate. I wonder where Australia sits on highest median salary? I suspect highly. But what creates this high wealth? Well negative gearing for one. What else does Australia actually have other than China buying resources? Not a lot. Is this all sustainable long term? It just doesn't stack up for me.

RedDragon2008

Let me tell you about a emperor and his clothes

Tramps_mate

The Australian housing market has been in growth for a while. It will crash soon as mining job salaries decrease..