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Sydney housing market is overvalued by 40%
Topic Started: 16 Nov 2016, 04:44 PM (4,096 Views)
Simon_S
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Sydney housing market is overvalued by 40 per cent says new SQM research report

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SYDNEY’S property market is overvalued by 40 per cent and the Reserve Bank needs to take steps to stop a “a dangerous housing bubble”, according to one of the country’s most well known property experts.

SQM Research have released their Housing Boom and Bust Report this morning and have warned that the Australian Prudential Regulation Authority need and the Reserve Bank need to either lift interest rates or curb home lending to avoid a bubble.

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Authored by SQM director Louis Christopher, the report warns that prices could boom as much as 18 per cent in Sydney next year if lending rates are cut again- leading to eventual downturn.
According to Mr Christopher, the Sydney market is now its most overvalued since 2003.

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“The Reserve Bank need to take tougher action if they want to avoid a housing bubble,” Mr Christopher said.

“Sydney prices will see out of control double digit growth next year if authorities don’t take action, which will lead to a subsequent fall in the market in 2018.”

“The last time we saw Sydney this over valued was in 2003, just before the market saw a correction that lasted several years.”

Mr Christopher said the shortage of stock was driving up prices in Sydney- particularly in the east and lower north shore.

“The heart of the emerald city is booming right now,” Mr Christopher said.

“There are very few new listings, which is abnormal given it is the spring selling season- a time when listings rise and auction clearance rates normally fall.”

“The lack of listings have been creating angst among home buyers, particularly the ones who sold during August and need to rebut back into the market before their settlement.”

“The angst is starting to create a ripple effect.”

“Auction clearance rates in very recent weeks have also been elevated in Sydney’s west, south and south west, whereas earlier this year, all of Sydney’s outer ring was flat.”


Wow..............According to one of the country’s most well known property experts.

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Rufus
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Take risks - if you win you will become wealthy, if you lose you will become wise
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Simon_S
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Rufus
16 Nov 2016, 05:50 PM
Did you post this to make yourself feel better?

Thanks for the "Monthly" Update.......

Chart at 3.46 looks very interesting, Never has there been such an extreme amount of Supply going back to 1966.

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Rufus
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Simon_S
16 Nov 2016, 06:05 PM
Chart at 3.46 looks very interesting, Never has there been such an extreme amount of Supply going back to 1966.
Yep, just not so much in Sydney.
Maybe in the next cycle.
Take risks - if you win you will become wealthy, if you lose you will become wise
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Simon_S
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Rufus
16 Nov 2016, 06:08 PM
Yep, just not so much in Sydney.
Maybe in the next cycle.
You mean that never ending upward cycle........

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Rufus
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Simon_S
16 Nov 2016, 06:14 PM
You mean that never ending upward cycle........
I suggest that you don't buy.
Wait until prices in Sydney fall by 40%.
Take risks - if you win you will become wealthy, if you lose you will become wise
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Simon_S
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Rufus
16 Nov 2016, 06:21 PM
I suggest that you don't buy.
Wait until prices in Sydney fall by 40%.
LOL.....So something is 40% OVER VALUED but some how cant fall 40%............

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Rufus
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Simon_S
16 Nov 2016, 06:48 PM
LOL.....So something is 40% OVER VALUED but some how cant fall 40%............
No it can fall by 40% and in fact it can fall by more than that, but it doesn't mean it will fall by 40%

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herbie
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Rufus
16 Nov 2016, 06:53 PM
No it can fall by 40% and in fact it can fall by more than that, but it doesn't mean it will fall by 40%
I liked your suggestion that Simon waits 'til Sydney drops 40% before buying.
Edited by herbie, 16 Nov 2016, 07:11 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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Simon_S
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Rufus
16 Nov 2016, 06:53 PM
No it can fall by 40% and in fact it can fall by more than that, but it doesn't mean it will fall by 40%
It Can.....But Won't because...........

Quote:
 
Yes Debt can go on forever.....
Yes Interest rates will forever be Low......
Yes Growth can never be interrupted......


So are you trying to say that SQM are wrong that the
Quote:
 
Reserve Bank needs to take steps to stop a “a dangerous housing bubble”, according to one of the country’s most well known property experts.


So they are Well Known Experts but you know more?

So there's no Dangerous Housing Bubble?

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