Australian Housing Boom Just Beginning, RBA Not Concerned - HSBC; Expect high single-digit housing price growth this year and low double-digit growth over 2014
Tweet Topic Started: 8 Oct 2013, 10:43 AM (3,067 Views)
More than anything else, it is population growth that drives housing construction. All this talk about rising prices leading to construction is a bit of a furphy.
So all the tradies have been off in Whoop Whoop earning $180K plus pa ta build mining stuff - Now the plan is for them to come back, take a pay cut ta $150K pa maybe, 'n build housing stuff - With the RBA having dropped interest rates ta help everyone borrow up big 'n pay them. Goodo - Let's see how this pig flies then ...
Hmmm - What I actually find MOST disturbing about the plan is that it's the BEST our best 'n finest can come up with? Now THAT'S a REAL bloody worry!
So all the tradies have been off in Whoop Whoop earning $180K plus pa ta build mining stuff - Now the plan is for them to come back, take a pay cut ta $150K pa maybe, 'n build housing stuff - With the RBA having dropped interest rates ta help everyone borrow up big 'n pay them. Goodo - Let's see how this pig flies then ...
Hmmm - What I actually find MOST disturbing about the plan is that it's the BEST our best 'n finest can come up with? Now THAT'S a REAL bloody worry!
It's a fair bet that if this works — and it's still an 'if' — interest rates will need to go back up a little. But they won't go back to where they were previously (4.25%). Probably somewhere in between there and where they are now (2.5%); let's say 3.5%. And when the next downturn hits, they'll be slashed furiously once again, to a new low, maybe 1.5%. Rinse and repeat and eventually the cash rate will reach zero — what happens then?
The Australian housing market is at the start of a boom and is not in a bubble, with any such concerns premature, HSBC's economists Paul Bloxham and Adam Richardson say.
But the risks of inflating a potential bubble could see the Reserve Bank become reluctant to cut rates further, the economists said in a research note today.
They added that the rise in prices was trickling through to housing construction growth, as recent figures on building approvals have shown.
The economists said previous falls in house prices between late 2010 and mid-2012 meant that prices needed to rise strongly to make up for previous losses.
Business conditions in the finance, business, property and construction sectors strengthened in September, possibly driven by the revival in the housing market, the National Australia Bank monthly business survey released today found.
Sydney overtook Perth to record the strongest weekly house price gains among the states and territories last week, rising 0.9 per cent week-on-week, an ANZ housing market report on Monday stated.
Over the past 12 months, Sydney recorded the strongest trend growth of 8.5 per cent year-on-year, the ANZ data showed. Perth prices recorded the second strongest trend growth - posting a 7.5 per cent lift year-on-year. However, trend growth rates in Brisbane and Adelaide were much smaller, rising by 1.5 and 0.7 per cent respectively.
So all the tradies have been off in Whoop Whoop earning $180K plus pa ta build mining stuff - Now the plan is for them to come back, take a pay cut ta $150K pa maybe, 'n build housing stuff - With the RBA having dropped interest rates ta help everyone borrow up big 'n pay them. Goodo - Let's see how this pig flies then ...
Hmmm - What I actually find MOST disturbing about the plan is that it's the BEST our best 'n finest can come up with? Now THAT'S a REAL bloody worry!
Do you really think tradies will be able to keep commanding 150k ? or even much above 100k to build house and land packages ?
your chart shows the opposite to what you thought it showed, your post was guff
the evidence is mixed.
and there are other factors.
You are just being a one note troll as usual.
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
one note? no I haven't discussed building acivity with you before, have pointed out your mistakes in other areas before but not on this particular one
My mistakes?
Why don't you try writing a decent post for once in your life.
You are a one line wonder that adds fuck all to the debate.
In this case, why don't you provide us with a detailed explanation as to why making the price of the housing we already have is the answer to the inadequate supply response we have.
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
Why don't you try writing a decent post for once in your life.
You are a one line wonder that adds fuck all to the debate.
In this case, why don't you provide us with a detailed explanation as to why making the price of the housing we already have is the answer to the inadequate supply response we have.
why should I explain it to a rude angry dislikeable person like you, wallow in ignorance mate
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