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House prices fall as RBA interest rate hikes bite

House prices fall as RBA interest rate hikes bite

Old Jul 30th 2010, 11:02 am
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Default House prices fall as RBA interest rate hikes bite

Is it good news?...

"Analyst said strong fundamentals of solid population growth, average mortgage interest rates, a willingness of banks to lend for homes and low unemployment would help to bring about a soft landing for house prices over coming months."
http://www.theaustralian.com.au/busi...rom=public_rss

"But experts say there is unlikely to be a significant downturn - as constantly predicted by a range of overseas experts - because of a national housing shortage."
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.

Last edited by coolshadows; Jul 30th 2010 at 11:12 am.
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Old Jul 30th 2010, 11:18 am
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Default Re: House prices fall as RBA interest rate hikes bite

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.
 
Old Jul 30th 2010, 3:54 pm
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Default Re: House prices fall as RBA interest rate hikes bite

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.
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Old Jul 30th 2010, 5:18 pm
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Default Re: House prices fall as RBA interest rate hikes bite

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.
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Old Jul 30th 2010, 10:08 pm
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Default Re: House prices fall as RBA interest rate hikes bite

Originally Posted by OzExpat View Post
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.
i see the art of muttering words without saying anything isnt dead

your not a politician are you?
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Old Jul 31st 2010, 12:12 am
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Default Re: House prices fall as RBA interest rate hikes bite

Originally Posted by steve`o View Post
i see the art of muttering words without saying anything isnt dead

your not a politician are you?
You must be a bit simple if you couldn't understand what I was saying.
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Old Jul 31st 2010, 12:30 am
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Default Re: House prices fall as RBA interest rate hikes bite

Originally Posted by rab View Post
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.
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:

Last edited by coolshadows; Jul 31st 2010 at 12:39 am.
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Old Jul 31st 2010, 12:48 am
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Default Re: House prices fall as RBA interest rate hikes bite

Originally Posted by OzExpat View Post
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.
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
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Old Jul 31st 2010, 1:08 am
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Default Re: House prices fall as RBA interest rate hikes bite

Originally Posted by markbhx View Post
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
Yeah I reckon if you play your cards right you might get a good deal in the Perth Market.
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Old Jul 31st 2010, 1:35 am
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Default Re: House prices fall as RBA interest rate hikes bite

Originally Posted by man_called_Horse View Post
Yeah I reckon if you play your cards right you might get a good deal in the Perth Market.
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
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Old Jul 31st 2010, 1:50 am
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Default Re: House prices fall as RBA interest rate hikes bite

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.
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Old Jul 31st 2010, 2:30 am
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Default Re: House prices fall as RBA interest rate hikes bite

Originally Posted by markbhx View Post
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
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.
 
Old Jul 31st 2010, 3:48 am
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Default Re: House prices fall as RBA interest rate hikes bite

Originally Posted by ABCDiamond View Post
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.
But you are then suggesting by extension that Australia has one of the lowest multipliers of the western world which isn't correct.
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Old Jul 31st 2010, 4:09 am
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Default Re: House prices fall as RBA interest rate hikes bite

Originally Posted by Centurion View Post
But you are then suggesting by extension that Australia has one of the lowest multipliers of the western world which isn't correct.
No. I don't know what all the other countries average mortgages are.

But it will be an interesting exercise for me
 
Old Jul 31st 2010, 4:13 am
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Default Re: House prices fall as RBA interest rate hikes bite

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.
 

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