Housing bubble in Australia
#241
Re: Housing bubble in Australia
In general, people in Cronulla work in a non-specific occupation.
Currently the median sale price of houses in the area is $1,530,000." - rpdata.com
I also don't think the house price trend is a flat as you suggest above...
#244
Re: Housing bubble in Australia
As in every housing market, it all depends on how willing the banks are to lend money. The rule being - as long as banks are willing to lend and there is demand (which in most countries will always be true), house prices will continue to increase. Only when there is a drop in demand or the bank become less willing to lend, then house price will fall.
Only 10 years ago, the average new home loan was around 3.5x salary, anything more was considered 'over stretching'. This has changed over the years and now banks are happy to lend 5x or more. I'm sure as times passes, this will increase to 10x or 20x salary with extended repayment options beyond 30yrs.
As long as ABCDiamond is right in thinking that salaries are keeping in line with the increase in house prices over the years (once fluctuations are flattened out), I don't see a problem.
#245
Guest
Posts: n/a
Re: Housing bubble in Australia
http://www.homepriceguide.com.au/sna...NSW&source=apm
Hmmm we seem to have conflicting expert property prices.
However, these are the 4 house sales in Cronulla for December...
$830,000 12/12/2009
$1,530,000 23/12/2009
$1,595,000 12/12/2009
$1,612,500 17/12/2009
With the $1,530,000 one plainly there.
The APM median price is taken over a 6 month period, so 'maybe' averages out over more sales ?
#246
Guest
Posts: n/a
Re: Housing bubble in Australia
Is it YOUR thinking that Cronulla prices are a median of $1.53m or are they figures from another source ?
#248
Re: Housing bubble in Australia
I guess that's the problem with median house prices, often they are only based on actual sales. Sell a few 3 bed houses one week, then more 4 bed the next and the median races away.
rpdata supposedly try to even this out, but it's realestate.com.au behind it, so I guess they have their own agenda.
rpdata supposedly try to even this out, but it's realestate.com.au behind it, so I guess they have their own agenda.
#249
Re: Housing bubble in Australia
[I was quoting the suburb report from rpdata]
#250
BE Enthusiast
Joined: Jul 2009
Posts: 593
Re: Housing bubble in Australia
I'd like to comment on the old trope that demand caused by rising population keeps house prices high.
Canada and the US have higher population increases than Australia and the UK, yet houses there are considerably cheaper. I believe Demographia put this down to planning laws.
Either way, the demand itself is not causing the rise, obviously, or houses in the US would be severely unaffordable, like they are in Aus/UK.
Canada and the US have higher population increases than Australia and the UK, yet houses there are considerably cheaper. I believe Demographia put this down to planning laws.
Either way, the demand itself is not causing the rise, obviously, or houses in the US would be severely unaffordable, like they are in Aus/UK.
#251
Re: Housing bubble in Australia
There's no such thing as a housing bubble unless you're a goldfish...
and trapped inside one.
and trapped inside one.
#252
Banned
Joined: May 2007
Location: Sydney
Posts: 564
Re: Housing bubble in Australia
But you saw the point to convert it from the worldwide standard comparison of Gross income, to get to a more fanciful figure of Net income.
I got the feeling that this board was pretty well aimed at the UK market for people moving here, so they would be used to seeing the figures based in gross income, but your higher figure from net incomes would give them a false impression.
You saw the point to do that.... hmmm..
And where did you get that $610,000 price from ?
The Australian Bureau of Statistics quotes
I got the feeling that this board was pretty well aimed at the UK market for people moving here, so they would be used to seeing the figures based in gross income, but your higher figure from net incomes would give them a false impression.
You saw the point to do that.... hmmm..
And where did you get that $610,000 price from ?
The Australian Bureau of Statistics quotes
The people living in the UK reading this are interested in the situation in Australia. They know what's happening in the UK. Why would figures using NET income give them a false impression? It's the real world. I suggest your figures using gross income gives them a false impression.
$610,000 is from rpData Dec 2009. Your figures from ABS are Mar 2009!
#253
Banned
Joined: May 2007
Location: Sydney
Posts: 564
Re: Housing bubble in Australia
Nail on the head! Look back at Pomster and Swigski's post history and the housing market + some big crash is the one and only topic on their agenda.
Perhaps they should get together for a coffee or something and discuss their pet subject to their heart's content ... and please spare us from the most inane and directionless thread on this forum.
Perhaps they should get together for a coffee or something and discuss their pet subject to their heart's content ... and please spare us from the most inane and directionless thread on this forum.
#254
BE Enthusiast
Joined: Nov 2009
Location: Dullsville
Posts: 672
Re: Housing bubble in Australia
Nail on the head! Look back at Pomster and Swigski's post history and the housing market + some big crash is the one and only topic on their agenda.
Perhaps they should get together for a coffee or something and discuss their pet subject to their heart's content ... and please spare us from the most inane and directionless thread on this forum.
Perhaps they should get together for a coffee or something and discuss their pet subject to their heart's content ... and please spare us from the most inane and directionless thread on this forum.
I disagree with your view that this thread is directionless, there have been some good points and facts raised. People have taken time to post decent responses which is refreshing considering the quality of most of the discussion on this forum.
#255
Account Closed
Joined: Jun 2005
Posts: 9,316
Re: Housing bubble in Australia
It's funny how people go on and on about where they can buy Marmite or Monster Munch and yet, signing up for a 30 year debt on the biggest purchase of your life is described by yourself as 'inane'. This subject IS important for many new migrants coming over and they need some facts and alternative views from the 'every thing is rosy' crowd who post endlessly on here.
I disagree with your view that this thread is directionless, there have been some good points and facts raised. People have taken time to post decent responses which is refreshing considering the quality of most of the discussion on this forum.
I disagree with your view that this thread is directionless, there have been some good points and facts raised. People have taken time to post decent responses which is refreshing considering the quality of most of the discussion on this forum.