MartinLuther

Can we stop it with the s, it's doing me head in?

bcworld

OK...Melbourne, Sydney, Brisbane....wherever....not sure where the numbers are coming from but the treasury numbers for the real annual house price index for ALL Australia I am looking at....which very conveniently set 1990 as the index of 100 say the following:

1990 100
1991 98
1992 97.6
1993 97.8
1994 100.2
1995 99.2
1996 98.1
1997 100.3

...then they start rising.

So much for doubling every 7 years though!

bcworld

Nope, Perth did too.

1990 101,125
1991 99,500

MartinLuther

If those figures are accurate then they blow away a theory that house prices would have obviously gone up if bought in 1990 and sold after 1993.


Can we call this a draw? It's not like house prices are the economy.

swigski

Include Perth's price drop from $101,125 to $99,500 and you get another major city (population of 1,188,762) with a loss.

That's 43% of the population were affected by a median house price drop in 1990-1991.

Real house prices which are affected by income and inflation etc were down over a prolonged period however.

1990 100
1991 98
1992 97.6
1993 97.8
1994 100.2
1995 99.2
1996 98.1
1997 100.3

swigski

I intended to, hence my comment about selective formatting

House prices FELL in real terms.

ozzieeagle

Dont think I've seen one of those since the early years of Primary school... You'd have to give ABCD some kind of handicap like a 5' elevation or something on account of his age ?

ABCDiamond

Are we talking House Prices or Real term values now ?

It seems you have changed the topic...

I am talking about House prices, which you were aswell, until you selected to use the comparative values against wages, instead, as they show a drop in those years.

ABCDiamond

No... I am having fun

ABCDiamond

Using the "real annual house price index" we have never seen a doubling in 7 years, or even anything like doubling. Maybe 50 to 100 years it may double.

But very few people use that index, as it does not compare actual $ prices, as it is an index comparison of house prices and wages / inflation etc.

Anyway, even with that index the drop in 1991 due to the recession, was 2% or $10,000 on a $500,000 house.
I don't think many of us will be worried by such a drop, will we ?

ABCDiamond

And 57% were affected by a median house price INCREASE in 1990-1991.

However, 43% in your language is the bulk of the population....

You do understand why I do not wish to totally rely on your FACTS... don't you.

Swerv-o

Just trying to maintain an even keel.

I've been thoroughly enjoying this thread for weeks - Don't want to see it devolve into name calling like so many others do...


S

ABCDiamond

Not bad in a recession though, a 1.6% drop in property price, before a bounce back the following year

Perth
1990 $101,125
1991 $99,500 -- Recession --
1992 $102,500
1993 $112,750
1994 $123,125
1995 $126,788
1996 $126,625
1997 $134,125

But the rest of WA
1990 $77,425
1991 $82,500 -- recession --
1992 $84,100
1993 $89,925
1994 $100,050
1995 $112,850
1996 $123,425
1997 $134,725

I wonder how much of that Perth drop was the result of the high end properties dropping, but the lower end ones not dropping.

I know that my cheap house in Sydney never dropped in value in 1991, even though the median did drop by a 'savage' 6.19%

Although 'savage' may be an overstatement looking at the two previous years in Sydney:
1989 21.17% increase
1990 13.55% increase
1991 -6.19% drop
and then things began going up again in 1992.

bcworld

Are you suggesting that property prices will fall in a recession!?

ABCDiamond

Maybe in some areas, but not for the BULK of the population