it amazes me how the press and the govt are spinning the latest housing figures. the govt are playing it down because they dont want the fed reserve to increase rates and the media is falling for it.
aparently melbourne is leading the slowdown ‘only’ growing 3.5 pct in the last quarter.
in most investments this is a great return. thats 12 pct a year wch most of us wld take anyday. sure compared to the property market in the last few years that might seem low – but for mine i wld still call it pretty hot even in our melbourne.
the rest of the country is still booming.
Originally posted by aussierogue:the rest of the country is still booming.
I don’t think it is true because I believe that yes some areas are still booming, but other might already slowdown or even going backward in some case.
Warm Regards
ChanDollars
[Keep going, you’re on your way to Frolic Freedom!]>>the rest of the country is still booming.<<
You hope (as do I).
The fact is however that the figures for the December quarter includes a period during which the interest rate hadn’t increased as yet.
The January quarter will tell a different story.
The public’s perception of the interest rate increases (with the great assistance of the ‘helpful’ and irresponsible newsrags and TV news services) have created an undue unreal expectation of substantial decreases in house prices.
This indeed hasn’t occurred, not as yet anyway, though it has taken the fever out of the market.
So overall, from the general public’s point of view that is, by and in itself, not a bad thing to have happened.
Unless there is high inflation rate occurring ask yourself where the rates can finish up.
It appears however that buyers have the perception that they now will be able to ‘steal’ a property by holding off on raising their hands at auctions.
My view (and that is all it is) is that the market will toddle along until such time as sufficient people realise that there isn’t a large downturn and the demand will make it take off again.
Pisces
AS much as actual interest rises affect behaviour, so do expectations of interest rate increases also bring with it, self-fulfilling bahviour.
That is, if interest rates are expected to increase, this will have some dampening effect on prospective purchasers decisions.
Whilst the two quarter percent increases has had an ffect, so to has the ongoing discussion of future increases as well.
Pisces, so while the media’s attention to the ‘iminent property disaster’ has been usually short on information and driven more by emotion, there is a silver-lining to all this. The need for future interest rises are avoided….due to the fact that most people’s decisions (this forum is an exception to this rule!) are based on some form of emotion/psychology.
James
I spend my weekend going to open houses of new listings, have noticed that places are on the market for months and the amount of people attending the inspections have fallen from appx. 15 people to about only 3 or 4.
Have not needed to go to any inspections for last 3 weeks as i have seen them already.
I guess it is depend on the area and where you go.
Warm Regards
ChanDollars
[Keep going, you’re on your way to Frolic Freedom!]In my suburb before Xmas 3 br home need work sold land content only $350,000 last week 3br home in good cond. sold $348,000 I thought it would go for $390,000 easy .Postie
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