man_called_Horse

wow whats the population of Brisbane compared to Sydney?

fish.01

Sydney 4.5 million
Brisbane 2 million (+ 750,000 on gold/sunshine coasts btw)

mr mover

Intresting to see Brisbane did not get in there..............MM

Centurion

Probably because with 2 million people it hardly qualifies as a world class city

mr mover

Adelaide is in there with 1.28 mill..................MM

Centurion

To be honest, and with the deepest respect to ABC's googling ability, I will go with the world economists on the subject. Whilst I agree that claims of x7 income is an overestimate and the 61% stated in the economist is headline trash, the reality lies somewhere in between.

It is not a simple case of mortgage approval rates and average salaries. The complexities run far deeper than that as we all know.

Interest rates have risen to a more sustainable level for the rest of the year. Contraction in house price data, sliding building approvals, retails sales are weak, consumer confidence low, demand from China for resources plateauing with iron prices being reduced by 25% in the next 1/4.

The last couple of months for the Australian economic data has not been kind and there is little underlying good news expected. Ultimately it is the market which dictates if house prices are too high and the general public is now very wary and quite rightly so in my opinion.

What I see in my own surrounding suburbs in Bayside Brisbane is increased housing stock on the market aka more houses sitting there unsold despite price drops. Land a few streets away from me would not have even had time for a for sale sign to be put up a year ago sits in rows awaiting the happy day when the get adopted by a family to build on, but has been like that for weeks.

Of course only time will tell. The House price index and June trade balance sheets are out on Thursday and if not on target could scare the market place even more.

This is an interesting read about the interest rates. http://www.businessspectator.com.au/...cument&src=rot

ozzieeagle

Blimey where do they all hide ? Up in shacks in those hills ?

To be honest I dont have any problem with Adelaide at all.... Fantastic Scenic drive into the place... unlike Melbournes down the Hume... the State Government should fix that up.

Back to the thread.... Prices dropped in Melbourne last month by at least .7 of a Pct... I personally reckon it's more. There again, they are still well up on this time last year. As from July through to November they were rising at crazy rates, in some places close to 5pct a month.


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man_called_Horse

It is interesting that there are more properties available for sale in Brisbane than Sydney despite 1/2 the population. But then those figures do not include those over $1m

jimbo_d

Absolutely can't agree more. I've said before the most likely outcome for house prices here is a long period of relative stagnation and inflation eating away at the prices. Perth has had two quarters of falls of 1.5-2.5% for instance. It's the nutters who post relentlessly expecting falls in the 40% plus regions, and say that houses are unaffordable, which they quite clearly aren't, otherwise nobody would buy them.

man_called_Horse

Have to agree with you there, I think there a few individuals who start these threads and are speculating not much more than wishful thinking..... They are trying to convince everyone that prices are going to fall 50% but the only people they have convinced are themselves.

Although I do think there will be a correction in the Market at some stage but at worst 10%

coolshadows

Note: The old rule was 3.5x single salary, or 3x joint salary.

ABCDiamond

I tend to agree with that.

When the over exaggerated figures come out, I tend to try to find the opposing end of the spectrum. Most people then see both ends and logically end up somewhere in the middle.

If people see one extreme and the middle, they will still tend to locate the middle of those figures.

However, those average mortgages are actual figures from Australian Bureau of Statistics.

ABCDiamond

1958: £10pw got a £2,000 mortgage. 3.84x single salary. They bent the rules back then aswell

asprilla

If the average new house price really is $500k, perhaps we can conclude from the size of the average deposit, that there are very few 1st home buyers purchasing new builds.

coolshadows

It must have been some place, my parents bought there 3 bed semi in 1972 for £3,000. (you're older than I thought too )