coolshadows

Is it good news?...

http://www.theaustralian.com.au/busi...rom=public_rss

House prices post largest fall since April 2008

- I guess it's a good job the property market isn't full off investors who might take flight in a fall occurs.

ABCDiamond

What about the figures ?

House Prices rise as RBA interest rate hikes bite...

• Sydney showed a growth of 0.5%
• Melbourne showed a growth of 0.2%
• Adelaide showed a growth of 1.1%

However, average Prices across the nation's capital cities fell 0.7 per cent, latest research from RP Data shows.
But experts say there is unlikely to be a significant downturn ...

Perth however, recorded a fall in value over June at -2.5%.[/I]

Perth appears to have dragged down the overall figures.

rab

Property is going through the roof in Adelaide. That 1.1% rise was last quarter, it hasn't slowed at all. We are lookimg ofr a house right now and are being priced of some areas. I rent in Glenelg but cannot afford to buy here.

OzExpat

And so the great house price correction in Australia begins...I've seen it first hand in the UK and the USA and now I shall watch it unfold in Oz over the next few years.

steve`o

i see the art of muttering words without saying anything isnt dead

your not a politician are you?

OzExpat

You must be a bit simple if you couldn't understand what I was saying.

coolshadows

It's not just the price in Adelaide, it's the size of lots - there selling subdivided-subdivisions! There are many lots in the south that are only 250m2 (that may sounds great, but by the time a single level house is put on it, there's no more than a small gap between houses with a small yard at the back.

A spacial lot:

markbhx

I can't wait, my savings are lying in wait like a predator ready to strike :-) All we need is the words "there she blows" following by a panic property sell off

man_called_Horse

Yeah I reckon if you play your cards right you might get a good deal in the Perth Market.

markbhx

Median House Price to Median Household Income. This was from 2007. I think Australia is now up to 7.5 income multiplier and US is down to 2.8. I couldn't find new figures for 2010

Country Multiplier
Australia 6.6
New Zealand 6.0
Ireland 5.7
UK 5.5
USA 3.7
Canada 3.2

MartinLuther

If the prices go up the doomsters say we're buggered.

If the prices go down the doomsters say we're buggered.

We're all doomed.

ABCDiamond

I can give you the average new mortgage figures for 2010.

• $304,400 NSW
• $288,800 ACT
• $288,000 WA
• $286,900 NT
• $286,400 QLD
• $275,300 VIC
• $247,700 SA
• $179,400 Tas

And based on that, together with the average home buyers having an income of $100,000+. It doesn't seem that the multiples quoted will affect those average buyers.

Centurion

But you are then suggesting by extension that Australia has one of the lowest multipliers of the western world which isn't correct.

ABCDiamond

No. I don't know what all the other countries average mortgages are.

But it will be an interesting exercise for me

ABCDiamond

Actually the UK one was quite easy to find:
May 2009
£112,000 : Average new mortgage for house purchase
£40,000 : Average income of new mortgage holders

A similar % to Australia.
Both being about 2.8 times the income for the average buyers.