House prices in some capital cities will recover in the next three years but a property bubble is unlikely, according to BIS Shrapnel.
The LMI Housing Outlook for 2012-2015, prepared by BIS Shrapnel, predicts that house prices in Sydney, Brisbane and Perth will improve over the next three years, while the other state capitals will experience weak conditions until mid-2015.
Median house prices fell in all capital cities, except Darwin, in 2012.
BIS Shrapnel managing director Robert Mellor said a lack of demand from investors and buyers who already owned a home – either upgraders or downsizers – had kept a lid on prices.
First home buyers were returning to the market and low interest rates had made residential property more affordable, he said. The report found the proportion of household income directed to mortgage repayments had fallen in all capital cities since 2010.
Net migration to Australia was rising after slumping from the peak in 2008-09, the report showed.
Mr Mellor said this lifted demand for rental accommodation as migrants typically stayed in Australia for three to four years before returning to their home country.
Rental markets were tight in Sydney, Brisbane and Perth with vacancy rates of around 2 per cent.
Spruik Spruik Spruik, property will tank, who doesn't know this already??
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
It's pretty much all been done to death. And until we have new information that isn't either "slightly up" or "slightly down" we're probably going to keep covering the same ground over and over...
Landgate does so good growth. The Market bottomed out in September 2011 at $467,000 and has been in a range from $490-500k over the last 3-4 months. Sales are also at the same levels of 2009/10 when we had large stimulus to support housing during the GFC, yet we have no stimulus in WA other than the long held 1st home buyers grant. In fact sales volumes on a monthly basis are closer to the boom years of 2006/7, not there yet but doing well.
So whats your point again, prices are up, sales are up and this is all prior to the last few interest rate cuts with more to come. Hmm I wonder what will happen to property prices and sales figures over the next 6 months.
Landgate does so good growth. The Market bottomed out in September 2011 at $467,000 and has been in a range from $490-500k over the last 3-4 months. Sales are also at the same levels of 2009/10 when we had large stimulus to support housing during the GFC, yet we have no stimulus in WA other than the long held 1st home buyers grant. In fact sales volumes on a monthly basis are closer to the boom years of 2006/7, not there yet but doing well.
So whats your point again, prices are up, sales are up and this is all prior to the last few interest rate cuts with more to come. Hmm I wonder what will happen to property prices and sales figures over the next 6 months.
Sales have fallen off significantly over the past 6 weeks according to the president of REIWA. Although that was expected as activity is based on confidence which took a massive hit recently. Still at levels not seen since the late 90's.
I take that means everyone saw it coming except you.
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