scoobydooathome

Gloomy predictions coincided with new Housing Industry Association data showing that the sale of new homes across Australia continued to slow last month, dropping seven per cent.

This time, however, with inflation so low, house prices will fall more sharply in money terms than they did in the past.

In Australia, where average house prices were overvalued by 31 per cent, that meant prices could fall by 20 per cent over the next 2 years.

The above with the increased Stamp Duty could have an effect on the markets.

Keelie

According to a report by the 'Economist' magazine, "house prices in the U.K. and four other major economies will drop dramatically in the next few years, leading some of these nations to slip into recession.Rising home prices in the U.S. Britain, Spain, and the Netherlands, Ireland and Australia, have created a 'property-price' bubble, the magazine said in a release.

It collected data going back to 1975 from sources including estate agents, lending institutions and govt. agencies. In all of those countries house prices are overvalued said Pam Woodall,economics editor at the Economist.
At some stage in the next few years, house prices in those countries will fall, and when they do,the consequences will be far nastier than the stock market burst.

The mag. advised homeowners in the six countries identified, as having a 'bubble' to sell up and rent until prices drop.
People considering buying a home should hold off until prices have fallen.
Most homeowners will have to stick it out and watch their wealth dwindle, Woodall said.
Where they went wrong was in expecting double-digit returnsto continue"
No mention of falling prices in Canada...maybe we've got enough to contend with in this country..SAARS and Mad Cow disease are about all we can handle just now.

DavidT

Come on guys, cheer up the worlds is gonna end, an economist told me. I think it might help if you all stop speculating. Forsight is a wonderfull thing, not always a blessing tho.
For one these lovely people did not predict the boom, another thing the econmists didn't even predict the slump in the exchange markets regionally never mind globally. Although there is a prediction with an opposite every single day.
When you start listening to estate agents then it's time to either give yourself a slap or get out the razor blades. For every forcaster & harbinger of doom their is someone who will have a different perspective. This ambition for told you so is not helpful. Do not forget the message from the STOOGES on the Trevor Mcdonald program, one of the people ( a mate of the researcher who paid him £250), sold his house to move into rented accomodation, predicting the slump & banking his equity. This A HOLE, had to sell as his flat mate was getting married and needed the cash for their new home. He however used his equity to buy a flat 300 yards away. Secondly on this stooge program was that idiot from Warwick uni, based in the cotswolds, again predicting a slump, he was not inclined to sell up & release the equity, he was in it for the long term, didn't have the courage of his convictions, nor good enough to move to a proper job in the real world.
Whatever your worried about, it is doubtfull you personally can do anything about it, except be positive.

SteveBannister

Is the glass half full or half empty?

Don't we want to buy an Australian house at a lower price? Let them slip as low as they can go, I say. House prices in the UK may be slowing down but aren't falling. Even if they do, isn't it all relative? Sell low - buy low! The exchange will still mean a better lifestyle!

jockney

Let them fall then you`ll be able to afford your palace in brighton beach!!!

SteveBannister

You haven't got time to play with computers, go and practice how to fold a nappy!

Remember, nappy goes on the bottom end, milk goes in the top end!

Steve and Eve.

Don

Sadly I'm also now an expert (twice over) in doing the bit previous to putting on a clean nappy.

Cheers - Don