The last sentence hit the topic on Ty head!

"Who's right, who's wrong.... Who knows."

I have been hearing the same thing since 2006.

So, house prices are going down by 50%, and we'll all be OK, it will be a buyers market. Just wait. This logic is amusing. If this happens, employment will fall through the floor, the lenders (banks) will be up poop creek, many with mortgages will be bankrupted... But don't worry, if you are a first home buyer, have a job(s), what's left of the lending market will be more than happy to lend to you errr, right!

Another gem from the cut and paste philosopher
Keep that tin foil hat on tight mate.

Just like when people thought that the property boom would never end, now I'm amazed that people think we will be in bust times for ever.

Some smarter aussies are now trying to buy american property because it's at rock bottom prices. If I had any spare cash I'd be doing the same thing.

We're at the bottom of the cycle now, as far as I can tell.

nebbian said...

Just like when people thought that the property boom would never end, now I'm amazed that people think we will be in bust times for ever.

Some smarter aussies are now trying to buy american property because it's at rock bottom prices. If I had any spare cash I'd be doing the same thing.

We're at the bottom of the cycle now, as far as I can tell.

WA is sitting in a bubble. I find it facinating linking in with people from our other offices around the world and talking about market conditions etc etc.

If China goes down, Australia will go too.

Supply vs Demand = not going to happen.

In regard to local property - although homes aren't selling like hotcakes (but many are still moving at good prices), my business (building design) is going great-guns due to home owners that would previously sell to upgrade their homes are now deciding to sit & wait it out and spending their dollars on renovations & additions.

Granted the expensive homes that had previously elevated prices due to views & location have taken a plummeting & will possibly drop further, but the average home will hold its value, or at least not drop to 50% IMO.

Then again...I'm no economist!

evlPanda said...

petermac33 said...

On another vid,Asian woman bought hi-rise apartment,think in Gold Coast few years back for $1.4m,now valued at $800k.

No one has any money with petrol and utility price rises especially.

Reckon 50 percent drop is just the start.

Can buy a respectable wooden house in certain parts of U.S now for $30K!

So we can expect a 50% drop in petrol prices too? And groceries? And electricity?

Petrol price bubble.

An Iranian war would see that go the other way............... how close is that to happening????

The supply China.... if China can't get oil from there, they will get it from our suppliers............ ^ prices.......ballz up.

If you want a cheap house or even say a large guest house , go to Ireland !

I'll put the title in the same category as "one day, cancer will be eradicated", "the 3-day work week", "retirement 55" and so on.

Fact is, the burst has been expected in Australia by some since the mid-90s, and it never happened, and likely won't. Hasn't even slowed much.

SandS said...

If you want a cheap house or even say a large guest house , go to Ireland !

or for a beach house to Brazil!
http://www.joaoebner.com/engine.php?id=68323&page=detalhe&cd_bairro=8763793&cd_negocio=&cd_tipo=458323&cd_imovel=2141543&ini=0&cd_cidade=1113&retorno=resultado

http://www.joaoebner.com/engine.php?id=68323&page=detalhe&cd_bairro=8763793&cd_negocio=&cd_tipo=458323&cd_imovel=2141543&ini=0&cd_cidade=1113&retorno=resultado

Divide price by 2 will give you the price in $, I will retire there, sell my over priced home, cash a max on the deal and then move, I could live very well with OZ super and pension as the average salary is about $ 500.00 a month and cost of life very low! This place is a little paradise went on holliday there a few times!

wodgina6722 said...

I've been expecting the fall in house prices but it just hasn't happened.

Had a look down Mandurah and surrounds, few weeks back
Its dropped at least 40% down there. Couple of prime houses at Ravenswood on big blocks less the $400k

petermac33 said...

On another vid,Asian woman bought hi-rise apartment,think in Gold Coast few years back for $1.4m,now valued at $800k.

No one has any money with petrol and utility price rises especially.

Reckon 50 percent drop is just the start.

Can buy a respectable wooden house in certain parts of U.S now for $30K!

Yea great 30k for a house in the USA but why would ya wanna live there
Cheap houses for sale in the wheatbelt places like cadoux and Mucka but again why would ya wanna live there?
Rockingham was just a classic case of real estate agents selling a turd as a gemstone.
Anything is only worth what someone is prepared to pay.
Don't recon we will see a massive price drop in general, just in isolated areas such as Rockingham that were overpriced to begin with.
W

felixdcat said...

SandS said...

If you want a cheap house or even say a large guest house , go to Ireland !

or for a beach house to Brazil!
http://www.joaoebner.com/engine.php?id=68323&page=detalhe&cd_bairro=8763793&cd_negocio=&cd_tipo=458323&cd_imovel=2141543&ini=0&cd_cidade=1113&retorno=resultado

http://www.joaoebner.com/engine.php?id=68323&page=detalhe&cd_bairro=8763793&cd_negocio=&cd_tipo=458323&cd_imovel=2141543&ini=0&cd_cidade=1113&retorno=resultado

Divide price by 2 will give you the price in $, I will retire there, sell my over priced home, cash a max on the deal and then move, I could live very well with OZ super and pension as the average salary is about $ 500.00 a month and cost of life very low! This place is a little paradise went on holliday there a few times!

Portugese is a pretty hard language to learn isn't it? However retiring to a place where they speak a foreign language probably isn't a bad thing to do. It would keep your mind active, learning the language, thus helping delay aging. However being so far away from family and friends would make it pretty tough. The Internet makes living in places like this not such an ordeal though.

If living there is so cheap it probably would be better to rent out your house here and just live off the rental income, rather than selling out.

Right now with a few properties and one day being debt free it would be sweet to live somewhere where it costs $500 a month to live and be collecting about $2500 a month net rental income, plus super and all that.

I'm looking for a house at the moment in melbourne (inner west)

My observations over the past 6mths:
- Real estate agents form 2 years ago are cold calling me asking if Im still looking
- Real estate agents actually calling you back (in the boom they didnt give a p0o)
- Way less people at open's (compared to the last 4 yrs)
- Not many baby boomers looking for investment properties
- The expected selling range is the range the property would sell for (not another 100k and in many cases the lower end)
- There are townhouses everywhere that are discounting up to $100k
- Many townhouse developments only going ahead once they have have sold at least one. Before people were queuing up to buy them.
- Many properties (10+ I have seen) have been withdrawn from the market over the last year.
- For Lease signs are staying up a lot longer. Before they never even had to put them up.

Im not sure if they would drop 50% (we are screwed if they do) but I have seen in my neighbourhood a softening of about 5 -10%. Many of my work mates that bought at the top of the cycle are in negative equity. They are bummed.