Mr Airey said that while the overall median rent was steady at $450 per week for the metropolitan area, rents had softened since June.
“Typical rents for houses have dropped $10 over the last three months to $450 per week, while rents generally for units and villas have dropped by around $15 since June to about $430 per week,” Mr Airey said.
The model you describe every day on APF in all kinds of formats with the notion of delving into what happen yesterday is going to happen tomoorow draw is broken.
Driving the economy on the expansion of household debt has been a godsend for boomers and a lot of gen x'ers for20 years but the household balance sheets are now packed to the gills.
Keep on with your disinfo though shill!
Read my sig you are repeating the debt nonsense that doomsters have fed us since the 90s and before.
This idea that house prices were driven by debt is rubbish. People in my generation borrowed the same as people do today relative to income. There was no great expansion of household debt for the individual. Households today only hold debt of about 1.5 years income, and servicing costs are really low.
The huge house price growth in the late 90s onwards was driven by wealth growth and population growth and catch up after the downturn of the 90s. That growth in wealth and population is ongoing. This is why you guys cannot understand why the market did not crash. Watch what happens over the next few years and you will see just how much of a debt problem we do not have.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
But supply of land has increased from 1 year ago over the same period that prices have boomed.
Can you pull out a graph to show us why rising supply is leading to a 25% increase in land prices?
Come on should be easy for you, rising supply and booming prices, why?
Well, clearly mike (unless the laws of economics have been utterly subverted) demand in this instance has outstripped supply hence the price rises.
Have you another explanation?
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
So what you are really trying to tell me is because your personal view point or political is against Immigration you do not factor this into the equation, or simply ignore it.
Well it is going to be a bad few years ahead for you as Abbott & Co are about to let in a flood of migrants and are going to attempt to turn wealthy Chinese into wealthy Australian citizens.
It does not matter if you don't like it, or disagree with it politically you can vote at the next election, but it will happen. If you fail to prepare for this outcome or how to take advantage of it that is you're lost opportunity.
You are standing against the tide.
On a real basic level I dont/cant disagree with what u are saying here!
Didn't prices also rise in countries which overbuilt?
They sure did.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
So why are you insisting that building houses will cause prices to fall?
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
It appears Veritas your fellow owner-occupiers have jumped ship and are buying up property or building.
Mike,
A quarter or more or houses being bought in Perth are being bought by investors.
1 in 4.
And that doesn't include the FTBs who are buying to NG and let.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
Well, clearly mike (unless the laws of economics have been utterly subverted) demand in this instance has outstripped supply hence the price rises.
Have you another explanation?
Yes I do but it is far to complex for your basic economic graphs which are straight out of a year 10 economic book 101. It is a little more complex then that.
I have attempted to point out to you time and time again, some of the issues. You ignore them or tell me how wrong I am, but then as it turns out, it was not me who was wrong. I do admit you are far from the worst offender and do support your comments with some data.
You really need to stop peddling the MB line though, what you often say here is word for word what is in some threads over at MB, yes I do have a glance over there but don't waste my time to comment.
But lets see how things play out over the next 6 months.
So why are you insisting that building houses will cause prices to fall?
Groan.
Because price inflation is the result of demand outstripping supply.
When supply outstrips demand, prices fall.
Skamy, a true bull would want supply to be constrained and falling not expanding.
Case in point:
Mike
22 Oct 2014, 05:57 PM
Yes I do but it is far to complex for your basic economic graphs which are straight out of a year 10 economic book 101. It is a little more complex then that.
I have attempted to point out to you time and time again, some of the issues. You ignore them or tell me how wrong I am, but then as it turns out, it was not me who was wrong. I do admit you are far from the worst offender and do support your comments with some data.
You really need to stop peddling the MB line though, what you often say here is word for word what is in some threads over at MB, yes I do have a glance over there but don't waste my time to comment.
But lets see how things play out over the next 6 months.
All that matter is if you think the demand for housing at this price is sustainable.
I don't.
I don't think the economic fundamentals will be there to support it and I think more and more investors will look to take profits which will put downward pressure on prices.
And there are lots and lots of investors, highly leveraged, who will rush for the door if they think the capital gains they were promised will not materialise.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
A quarter or more or houses being bought in Perth are being bought by investors.
1 in 4.
And that doesn't include the FTBs who are buying to NG and let.
Look at the long term trend for investors in Perth, it has always hovered between 25-30% of the market. Even when prices are falling it is still around these levels. There has been no real change in investor behaviour in Perth.
As the inflation data shows it is owner occupiers spending/building up big which is driving prices.
I know you don't like this as it goes against your view or hope, that investors and developers will massively over build to create a huge supply overhang. That is not what is happening, Owner occupiers are doing the bulk of the activity meaning they wont create a supply overhang that you want.
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