"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
Acton director Travis Coleman said the slump in sales was not unusual for this time of year.
"I think 12 months ago there were fewer listings on the market and buyers felt more urgency to buy," he said. "Compared with last year's figures, listings are 25 per cent higher and this has definitely taken some of the pressure off the market.
"It has to be said that while they have risen and continue to rise they are still below what REIWA considers the equilibrium point. We are not seeing listings flood the market and are not expecting a downward push on prices."
We seem to have acquired some bland shadow socks who don't really say anything, but just argue blandly, often repeating meaningless points or questions just to derail. Rather annoying but essentially pointless.
Actually, a fall in sales is not uncommon this time of year. Last year, comparatively, there were fewer listings and a more buoyant market, so the pressure has been taken off to some degree. The general vibe among the industry is that there is no more listings coming on to the market, therefore we should not expect to see prices fall.
There are instances in Perth, and other places for that matter, where the median price of an area could be up 50k over the last year, but where in fact house prices have fallen by 50k.
Sound confusing.....Not really.
We all see in our own areas where an old shitbox or weatherboard is knocked down and replaced with a brand new mcmansion with all the bling.
In Perth for example, there are many areas where a lot of shitboxes have been replaced with mcmansions over the last few years or so. This will push the median value for the suburb up, even though the other shitboxes may have gone nowhere in price, or even where the shitbox has dropped by 50k. So we have this example, where in fact houses ( the shitboxes)in the area could of gone down by 50k, that could be 15% down, yet the median for the area could show a rise of 50k, and then somebody thinks there shitbox is worth 50k more, when it fact it has dropped by 50%.
So prices are already falling, just the illusion shown above makes some areas look better than they are. Showing medians rising, while real prices are falling.
This is in fact how many areas show rises, from capital increases put into them, but where in fact that same old house in the area is flat or has gone backwards.
This point is very rarely touched on or mentioned, despite it having a great impact on area medians but not necessarily unimproved values.
There are instances in Perth, and other places for that matter, where the median price of an area could be up 50k over the last year, but where in fact house prices have fallen by 50k.
Sound confusing.....Not really.
We all see in our own areas where an old shitbox or weatherboard is knocked down and replaced with a brand new mcmansion with all the bling.
In Perth for example, there are many areas where a lot of shitboxes have been replaced with mcmansions over the last few years or so. This will push the median value for the suburb up, even though the other shitboxes may have gone nowhere in price, or even where the shitbox has dropped by 50k. So we have this example, where in fact houses ( the shitboxes)in the area could of gone down by 50k, that could be 15% down, yet the median for the area could show a rise of 50k, and then somebody thinks there shitbox is worth 50k more, when it fact it has dropped by 50%.
So prices are already falling, just the illusion shown above makes some areas look better than they are. Showing medians rising, while real prices are falling.
This is in fact how many areas show rises, from capital increases put into them, but where in fact that same old house in the area is flat or has gone backwards.
This point is very rarely touched on or mentioned, despite it having a great impact on area medians but not necessarily unimproved values.
So just something to have a little think about.
Depends largely on the quality of the stats. Sadly, quality seems inversely proportional to time. But I do appreciate the point. Sadly I doubt there is an easy way of improving the situation.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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