Perth is gonna have a slowdown the price growth. There has been some interesting suburbs that have been performing very strongly for many years . There has been information that Perths median income is considerably higher than the national reported figures . The trend..its expected to continue for the next decade.
I don't know what will happen to Perth house prices other than that we are very unlikely to return to the trough of the GFC prices. I suspect things will be pretty steady with a return to normality as the fear of the GFC wanes. Things will be clearer after the election I think.
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.
I don't know what will happen to Perth house prices other than that we are very unlikely to return to the trough of the GFC prices. I suspect things will be pretty steady with a return to normality as the fear of the GFC wanes. Things will be clearer after the election I think.
More nonsense.
WA had the best GFC of any place on the entire planet.
Its what is happening right now that should worry you.
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
WA had the best GFC of any place on the entire planet.
This is where your simplistic analysis methods lets you down yet again,Veritas. Yes Perth grew in GDP,in fact it grew faster than China during the downturn.
However, Perth property prices dropped like a stone, and construction of new homes fell dramatically. You missed this as you were hoping that the GFC would deliver 40% drops. Confidence has now returned and people are again buying and building homes, it is very unlikely to fall that low again, not least because house prices fell below replacement value and that is never sustainable.
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.
New Zealand’s central bank said it isn’t appropriate to raise interest rates at the moment and it is “seriously considering” using other tools to curb a housing-market boom.
“We at the Reserve Bank see the current overheated housing market as a real threat to future financial stability,” Deputy Governor Grant Spencer said in a speech in Wellington today. “Higher interest rates are not the right policy response at this time” and the central bank “is therefore seriously considering the use of macro-prudential policy,” he said. Enlarge image Reserve Bank of New Zealand Deputy Governor Grant Spencer
Reserve Bank of New Zealand Deputy Governor Grant Spencer. Photographer: Mark Coote/Bloomberg
The RBNZ is reluctant to raise its Official Cash Rate from a record-low 2.5 percent because that could boost a currency it has described as over-valued. Since peaking at above 86 U.S. cents on April 11, the New Zealand dollar has dropped more than 10 percent against the greenback amid signs of an improving U.S. economy and after limited intervention by the central bank.
Policy makers are “well aware that any official cash rate increases at this time would likely put unwanted pressure on the exchange rate,” Spencer said.
The New Zealand dollar traded 0.4 percent higher at 78.20 U.S. cents as of 3:30 p.m. in Wellington after a report showed business confidence rose in June to the highest since February 2010.
Rate Outlook
Spencer’s views echo RBNZ Governor Graeme Wheeler, who said June 13 he didn’t expect to raise borrowing costs this year. The bank’s forecasts released the same day signaled no change in rates until the second half of 2014.
“From what the bank’s emphasizing, it gives the impression they don’t want to touch the OCR for as long as they can,” said Craig Ebert, senior economist at Bank of New Zealand Ltd. in Wellington, who predicts the RBNZ will be forced to raise rates in March next year. “For us it’s more of a macro picture. We think the risks of them making a mistake here are rising.”
New Zealand’s dollar has declined since Wheeler on May 8 said he was intervening to weaken it. He bought a net NZ$90 million ($70 million) in May after selling NZ$256 million in April, according to RBNZ data published today.
Wheeler and Finance Minister Bill English last month agreed on the use of a number of measures to curb home lending, including limits on the number of loans banks can make at more than 80 percent of a property’s value.
Prime Minister John Key said this month he wants the central bank to exempt first-home buyers from the tighter lending criteria.
“Our preference is to keep the policy simple and effective by not having major exemptions and by minimizing the possibilities for avoidance,” Spencer said today.
I was dying to hear more about how house prices and rents have stopped rising, and about the 'end game stage' as I get 'further underwater'...
In his last/most recent post earthy took a cheap shot at my partner Shadow - my retaliation with a humorous cartoon probably proved too much for him to handle. Maybe he is busy purchasing property in South Africa??
there's a live gold price chart in that thread also.. you couldn't make this stuff up
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