http://www.news.com.au/story/0,10117,18715631-28217,00.html
Stable interest rates were key to kick-starting the property market, which began its downward trend when speculative investors quit the sector in mid-2003, sparking a fall in median Melbourne house prices from $367,000 that year to $359,500 in December 2005, and in Sydney from $533,000 to $524,300.would those numbers be right?
I Buy Property http://www.cashflowproperties.co.nz
Hi Don,
The difficulty with median prices is that different companies have different data sources and comparisons which can lead to slight variations in percentage change rates.
Having said that the differences seem about right and consistent with the trends in numbers I have seen.
John Edwards (Residex) made a great comment in a recent article I read – everyone has focussed on the recent 9% fall (over two years) and have forgotten to look at the 130 ish% growth in the last cycle in Sydney.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113thanks, thought it woul have been a bigger number given the amount of ink devoted to the issue!
I Buy Property http://www.cashflowproperties.co.nz
HI Don,
It would be interesting to get Michael Yardney’s comment here.
Some recent research I have just completed tends to suggest that the housing industry is undersupplying dwellings in many of the more significant cities around the country. As a result vacancy rates in many of these places have fallen to below 3% (point of market equilibrium) to the point where vacancy rates are at an all time low in some situations.
Consequential to this is upward pressure on rents (in dollar terms)
Much of the ‘popular press’ is based on, and appeals, to the emotions of readers. Many of these articles (electronic included) are not terribly well researched.
In some cases the print media uses statistics that are generated within the confines of their own ownership circle and thus generate their own ‘standing’.
As always individuals need to make decisions based on their information and research and should not rely on the popular press.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113i agree – and when you are not around (like me ) and you only get to read that sort of stuff it gets pretty hard to get a clean look at it.
I Buy Property http://www.cashflowproperties.co.nz
Personally l’ve always thought it was the $14,000 first home building grant that kick started the boom followed by steady quite low rates .
We were living near Noosa at the time of that and they were having trouble selling property . Suddenly Howard annouced the $14,000 and within 3 mths new homes started popping up everywhere and within 12 mths there , a shortage of both builders and new houses started to show .
lt also opened the door for investors to start buying extra houses using the grant in one of the kids names , an unnatural amount of property was being sold creating higher demand and off she went .We had quite a few friends at the time trying to save deposits and suddenly over night – bingo they were there and signing up for their first home .
Just my opinion but we literally watched it build up across the whole Sunshine Coast within 6 mths of the announcement prices and demand soared .
Pretty sure they could start another one anytime they wanted just buy giving out a decent sized new grant which at the time 14 grand was enough to get you in the door .
Food for thought.
Cheers.
PS – Actually l suggested a baby grant to a certain Labour leader after pointing all this out , as a way of increasing our birthrate believe it or not because of the troubles with an aging population later otherwise . He brought it in , Howard matched it and bingo we had the highest bithrate last yr in decades , laughable l know but eh , good for the country !
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