bondipom

http://www.smh.com.au/articles/2003/...502072621.html
Is this the turning point in Sydney house prices or just a temporary blip?

dotty

Come up here


22 blocks of land came up last week, developer kept 8 for family members, 700 people battled it out for the rest.

downunderpom

Who remembers the 'tighten our belts' days, when interest rates went to 15%? No THAT was a housing market crash!

dotty

Panic over .25 even to 1% is silly, most people should have factored this in unless they are plain bloody stupid.

I think theres some government reverse physcology in it. Like if they were in a position to really hike up rates they would have done it!!

Instead they are just trying to scare people into being more sensible.

bondipom

In theory the reserve bank of Australia is independant from the federal government. Interest rates are normally set to control inflation. A bit of a sledge hammer other methods have proved a failure.

If the RBA belives there is a threat of inflation from an imroving economy then rates will rise and so will the Aussie dollar.

People have been so stupid to borrow what they cannot afford and the banks are more than happy to take their money as long as there is the collateral.

I do not know the Brisbane market but from what I hear about migration to QLD there is plenty more room for rises up there.

In Sydney housing is now not affordable to first time buyers and rental yields are less than the interest rate. Basic economics tells one that someone has to give. I doubt it will be a dramatic propert crash but a slow correction.

downunderpom

It'd take more than this to knock sense into some of them! It's wisdom vs experience - where experience is tripping over, landing flat on your face, and getting a bloody nose; and wisdom is watching someone else get a bloody nose and saying 'hmmm.... that'd be a good thing to avoid doing, myself.' I had to have a lot of experience before I wised up! Still workjing on it!!

seang

its the exact discription of sydney prices i was given years ago by a life long sydneysider(live in bondi actually -just around from the old diggers club) they plateau out for a few years then rise again.you are in a better place to comment but seems that the view i was given was sydney prices rise -plateau - then rise but falls(or substancial one s are rare)-an only going on what i was given

bondipom

Bondi has just seen a rediculous unjustified rise due to a real life tv drama called the block where 4 couples competed to do up a block of flats. $750,000 for a 2 bed flat with no view. Over priced in my view but everyone here now thinks their flat is worth that much. The people who buy that type of place ie first time buyers are priced out. The ones that are buying are speculators.

Every now and again prices drop 20% in areas where the price rises are unjustified.