House prices and the media....
Jul 11th 2008, 5:26 am
#16
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Re: House prices and the media....
I genuinely think that when its a slow news day, just run a story about house prices going up or down. Doesn't matter which, just print any old crap about it to fill some space. People love to speculate about property prices when we all know its just going up in the long term anyway.
Jul 11th 2008, 6:06 am
#18
Lost in BE Cyberspace
Joined: Apr 2004
Posts: 10,375
Re: House prices and the media....
Must have been a slow day in sydney pretty sure it was the SMH that had petrol at $8 a litre and australia in recession.
Not sure about all this negativity in the markets, economic cycles come and go, always have always will. The the bargain hunters come in and off we go again.
Not sure about all this negativity in the markets, economic cycles come and go, always have always will. The the bargain hunters come in and off we go again.
Jul 11th 2008, 6:14 am
#19
has lost The Game
Joined: Apr 2005
Location: Chippendale, Sydney
Posts: 8,735
Re: House prices and the media....
Yup. Nothing very interesting going on here. It's not like the state government is about to implode or anything serious.
Oh... hang on...
S
Jul 11th 2008, 7:19 am
#20
small steps long journey
Joined: Aug 2003
Location: A river somewhere
Posts: 3,451
Re: House prices and the media....
Something which has been mentioned before but was reinforced today.
On the front page of The West Australian today there is a news item stating that the average Perth house price has fallen 6% in 6 months. I can't even find the article on their website.
I don't think that there's any doubt - expressed by the bulls or the bears - that this is a signficant drop in prices.
And yet in the UK, where houses prices have droppped 6.1% over the last 12 months - i.e. at half the rate of WA - the media acts as if it is the end of the world. "Biggest drop in two decades""etc etc
Discuss.
On the front page of The West Australian today there is a news item stating that the average Perth house price has fallen 6% in 6 months. I can't even find the article on their website.
I don't think that there's any doubt - expressed by the bulls or the bears - that this is a signficant drop in prices.
And yet in the UK, where houses prices have droppped 6.1% over the last 12 months - i.e. at half the rate of WA - the media acts as if it is the end of the world. "Biggest drop in two decades""etc etc
Discuss.
I could of course say that maybe there is a higher VI (vested interest) with the WA papers then in UK. i.e. things are going through the floor but the EA's/banks/Construction unions etc etc ask for it to be played down a tad for the moment so they can salvage what they can before it really gets bad. Play it up and kiss good bye to advertising. Also WA media would be aware of the issues in the early 90's when that boom ended and the whole sh*tstorm. I could say that but I would be mad
Jul 11th 2008, 7:59 am
#21
A former regular of BE
Joined: Oct 2004
Location: Carramar, Perth
Posts: 6,241
Re: House prices and the media....
Historically, that is probably in the genes as all first generation Aussies took a risk to get here then often struggled to survive. In the present, our Super is at the whim of the markets and not defined-benefit, in WA our economy is prone to exaggerated boom and bust and farmers are used to drought etc.
Jul 11th 2008, 8:46 am
#22
BE Forum Addict
Thread Starter
Joined: Oct 2005
Location: Perth
Posts: 3,453
Re: House prices and the media....
I genuinely think that when its a slow news day, just run a story about house prices going up or down. Doesn't matter which, just print any old crap about it to fill some space. People love to speculate about property prices when we all know its just going up in the long term anyway.
Jul 11th 2008, 8:51 am
#23
BE Enthusiast
Joined: Jul 2005
Posts: 936
Re: House prices and the media....
Or do they charge a one-off advertising fee for a fixed period, or until the house is sold, which would mean they benefit from higher turnover rather than column inches? (Sorry, slow day at work...)
Jul 11th 2008, 9:54 am
#24
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Joined: Apr 2006
Location: Berkshire-Perth-Berkshire
Posts: 427
Re: House prices and the media....
Something which has been mentioned before but was reinforced today.
On the front page of The West Australian today there is a news item stating that the average Perth house price has fallen 6% in 6 months. I can't even find the article on their website.
I don't think that there's any doubt - expressed by the bulls or the bears - that this is a signficant drop in prices.
And yet in the UK, where houses prices have droppped 6.1% over the last 12 months - i.e. at half the rate of WA - the media acts as if it is the end of the world. "Biggest drop in two decades""etc etc
Discuss.
On the front page of The West Australian today there is a news item stating that the average Perth house price has fallen 6% in 6 months. I can't even find the article on their website.
I don't think that there's any doubt - expressed by the bulls or the bears - that this is a signficant drop in prices.
And yet in the UK, where houses prices have droppped 6.1% over the last 12 months - i.e. at half the rate of WA - the media acts as if it is the end of the world. "Biggest drop in two decades""etc etc
Discuss.
Hi, the house prices here in the UK have dropped more than 6% in the last year. Houses just aren't selling here, there are houses on the market that were on last May when we got back from Oz. The main difference with the media I think is that here they over exaggerate everything that goes on and in Perth they just don't mention it and hope nobody notices. That's why everyone that moves there thinks it is Utopia and that there's no drugs, no crime, etc etc.
Jo
Jul 11th 2008, 1:24 pm
#25
Frequent Flyer Member
Joined: Jun 2007
Location: Melbourne
Posts: 10,994
Re: House prices and the media....
I was just wondering, with real estate ads in newspapers, is it not the case that the papers stand to gain more advertising revenues when the market is slow and houses are not selling, as the ads stay in for longer? The real estate section of the newspaper tends to be much thicker in a slow market, right?
Or do they charge a one-off advertising fee for a fixed period, or until the house is sold, which would mean they benefit from higher turnover rather than column inches? (Sorry, slow day at work...)
Or do they charge a one-off advertising fee for a fixed period, or until the house is sold, which would mean they benefit from higher turnover rather than column inches? (Sorry, slow day at work...)
But a 3 week stint is a bargain at $3000!
Jul 11th 2008, 1:35 pm
#26
BE Enthusiast
Joined: Sep 2005
Posts: 517
Re: House prices and the media....
Something which has been mentioned before but was reinforced today.
On the front page of The West Australian today there is a news item stating that the average Perth house price has fallen 6% in 6 months. I can't even find the article on their website.
I don't think that there's any doubt - expressed by the bulls or the bears - that this is a signficant drop in prices.
And yet in the UK, where houses prices have droppped 6.1% over the last 12 months - i.e. at half the rate of WA - the media acts as if it is the end of the world. "Biggest drop in two decades""etc etc
Discuss.
On the front page of The West Australian today there is a news item stating that the average Perth house price has fallen 6% in 6 months. I can't even find the article on their website.
I don't think that there's any doubt - expressed by the bulls or the bears - that this is a signficant drop in prices.
And yet in the UK, where houses prices have droppped 6.1% over the last 12 months - i.e. at half the rate of WA - the media acts as if it is the end of the world. "Biggest drop in two decades""etc etc
Discuss.
For anyone following the supply/demand debate about Aussie housing, Drutit's comments about oversupply are scary for Perth.
For my money, the MSM here are too concerned about RE-related revenues to say anything anywhere near as bearish as the UK papers. Anyone who doubts this should consider the significant trouble the West Australian has gone to to ensure that people pick up both parts of Saturday's West (advertising, rebadging, put all the interesting supplements in part 2 etc).
Cheers
Mbike
Latest News
Perth houses prices drop $30,000 - 11 Jul, 06:45am
The median house price in Perth has fallen $30,000 down to around $446,000 in the past six months and the rental vacancy has returned to normal for the first time in several years, according to the data released today by the Real Estate Institute of WA.
Data released today by the Real Estate Institute of Western Australia show that the Perth median
house price has dropped a further $14,000 since March, while the rental vacancy rate has returned
to normal for the first time in several years.
REIWA's preliminary results for the June quarter show a 3 per cent fall in median price, pulling the
metropolitan median down from $460,000 in March to around $446,000.
This follows the median price having peaked at the end of last year at $475,000.
REIWA President Rob Druitt said the post-boom market was still correcting but had now been hit by
the weaker consumer confidence in the overall economy, interest rate uncertainty and petrol
prices.
"Perth has experienced an overall slump of almost $30,000 in the median price since the beginning
of this year, and the June quarter shows that this slump is found right across the metropolitan area
and also that the regions have gone backwards a little too," Mr Druitt said.
REIWA data for June show that Mandurah dropped by 7 per cent, Greater Bunbury by 7 per cent,
Geraldton-Greenough by 9 per cent and Kalgoorlie by around 5 per cent.
Mr Druitt said the large number of properties for sale punctured the myth of a housing shortage.
"In WA we have a situation of oversupply - not a problem with undersupply, and this is due to the
strength of building activity between 2001 and 2007," he said.
There were 17,200 properties on the market in June (down 2 per cent on March), including 2,450
blocks of land.
Mr Druitt said the once tight vacancy rate for tenants had now returned to normal, with REIWA
recording a comfortable 3 per cent vacancy rate, illustrating many new properties had flooded into
the rental system as investor/owners now found it a difficult time to sell.
"For the first time in several years tenants should now find it much easier to find a suitable home.
There is much more stock available and much more competition amongst owners to secure good
tenants.
"However, rents did increase a little in the June quarter, lifting by $10 per week for houses to a
median of $350 per week, while units rose by $10 per week to a median of $320 per week," Mr
Druitt said.
"Given the large number of properties now being passed over into the rental system, it is
reasonable to expect that rental price growth will ease in the latter part of the year.
"Landlords need to be mindful of the changing conditions and not to price themselves out of the
market," Mr Druitt said.
The oversupply of housing is not restricted to the Perth market with both Mandurah and Bunbury
recording high stocks of listings along with healthy vacancy rates which have contributed to no
movement in rents in these regions during June.
Perth houses prices drop $30,000 - 11 Jul, 06:45am
The median house price in Perth has fallen $30,000 down to around $446,000 in the past six months and the rental vacancy has returned to normal for the first time in several years, according to the data released today by the Real Estate Institute of WA.
Data released today by the Real Estate Institute of Western Australia show that the Perth median
house price has dropped a further $14,000 since March, while the rental vacancy rate has returned
to normal for the first time in several years.
REIWA's preliminary results for the June quarter show a 3 per cent fall in median price, pulling the
metropolitan median down from $460,000 in March to around $446,000.
This follows the median price having peaked at the end of last year at $475,000.
REIWA President Rob Druitt said the post-boom market was still correcting but had now been hit by
the weaker consumer confidence in the overall economy, interest rate uncertainty and petrol
prices.
"Perth has experienced an overall slump of almost $30,000 in the median price since the beginning
of this year, and the June quarter shows that this slump is found right across the metropolitan area
and also that the regions have gone backwards a little too," Mr Druitt said.
REIWA data for June show that Mandurah dropped by 7 per cent, Greater Bunbury by 7 per cent,
Geraldton-Greenough by 9 per cent and Kalgoorlie by around 5 per cent.
Mr Druitt said the large number of properties for sale punctured the myth of a housing shortage.
"In WA we have a situation of oversupply - not a problem with undersupply, and this is due to the
strength of building activity between 2001 and 2007," he said.
There were 17,200 properties on the market in June (down 2 per cent on March), including 2,450
blocks of land.
Mr Druitt said the once tight vacancy rate for tenants had now returned to normal, with REIWA
recording a comfortable 3 per cent vacancy rate, illustrating many new properties had flooded into
the rental system as investor/owners now found it a difficult time to sell.
"For the first time in several years tenants should now find it much easier to find a suitable home.
There is much more stock available and much more competition amongst owners to secure good
tenants.
"However, rents did increase a little in the June quarter, lifting by $10 per week for houses to a
median of $350 per week, while units rose by $10 per week to a median of $320 per week," Mr
Druitt said.
"Given the large number of properties now being passed over into the rental system, it is
reasonable to expect that rental price growth will ease in the latter part of the year.
"Landlords need to be mindful of the changing conditions and not to price themselves out of the
market," Mr Druitt said.
The oversupply of housing is not restricted to the Perth market with both Mandurah and Bunbury
recording high stocks of listings along with healthy vacancy rates which have contributed to no
movement in rents in these regions during June.
Jul 11th 2008, 1:51 pm
#27
BE Enthusiast
Joined: Sep 2005
Posts: 517
Re: House prices and the media....
Some thoughts:
The credit 'crisis' is a temporary crisis IMO. Sooner or later, the market will sort itself out. Things will return to 'normal'.
There may be a recession in Australia (if there is, it will probably be mild IMO) but there will not be a recession in WA - or Qld for that matter.
The resources boom will not last forever, but it has a few more years still left in it yet.
The credit 'crisis' is a temporary crisis IMO. Sooner or later, the market will sort itself out. Things will return to 'normal'.
There may be a recession in Australia (if there is, it will probably be mild IMO) but there will not be a recession in WA - or Qld for that matter.
The resources boom will not last forever, but it has a few more years still left in it yet.
Don't want to sound too negative but there is a perfect storm brewing and blithe optimism and a she'll be right attitude could cost people a lot of money in the next few months.
mbike
Jul 11th 2008, 1:58 pm
#28
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Jul 11th 2008, 2:03 pm
#29
BE Forum Addict
Thread Starter
Joined: Oct 2005
Location: Perth
Posts: 3,453
Re: House prices and the media....
If it helps, Here is the story from WA Business News (you have to subscribe)
For anyone following the supply/demand debate about Aussie housing, Drutit's comments about oversupply are scary for Perth.
For my money, the MSM here are too concerned about RE-related revenues to say anything anywhere near as bearish as the UK papers. Anyone who doubts this should consider the significant trouble the West Australian has gone to to ensure that people pick up both parts of Saturday's West (advertising, rebadging, put all the interesting supplements in part 2 etc).
Cheers
Mbike
For anyone following the supply/demand debate about Aussie housing, Drutit's comments about oversupply are scary for Perth.
For my money, the MSM here are too concerned about RE-related revenues to say anything anywhere near as bearish as the UK papers. Anyone who doubts this should consider the significant trouble the West Australian has gone to to ensure that people pick up both parts of Saturday's West (advertising, rebadging, put all the interesting supplements in part 2 etc).
Cheers
Mbike
Jul 11th 2008, 2:25 pm
#30
BE Enthusiast
Joined: Sep 2005
Posts: 517
Re: House prices and the media....
"Dire" is a strong word. Rob Druitt of REIWA has certainly become more circumspect in his pronouncements of late. I think there is a growing realisation in the RE industry that they need to adjust their modus operandi to a slowing and/or reversing market. Whilst most of his advertorials in the West RE section used to be about not missing the boat, he now warns sellers against the dangers of loss aversion/cognitive dissonance. How many people will actually listen to what is basically sound advice will dictate which way the Perth market goes from here.