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House price collapse already started !! (Read 5285 times)
Sir lastnail
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House price collapse already started !!
Jun 20th, 2018 at 6:16pm
 
Thanks to the banking RC which has exposed the banks reckless lending practices means that the days of banks throwing obscene amounts of money at any old dump is well and truly over. The only direction for house prices to go now is down as the banks tighten up their lending practices and exposure to a housing collapse as buyers and investors exit the markets !

Quote:
House price debate goes from if they'll fall to by how much

There are few topics more contentious amongst economists, and at barbeques, than the direction of Australian home prices.

But 2018 has marked a dramatic shift in that discussion, at least amongst the economists and likely at the barbeques as well.

In the years between 2012 and 2017, most of the conversation centred on how high home prices could rise.

Late last year discussion heated up on whether they might fall.

Now that all the major indices are showing falling prices, with leading indicators like housing finance and auction clearance rates showing no signs of a bounce, 2018 has moved on to a discussion of how far house prices will fall.

The latest official Bureau of Statistics figures show residential property prices fell 0.7 per cent in the March quarter, led by the first quarterly price decline in Melbourne for five-and-a-half years and the first annual slide in Sydney in six years.

Nationally, property prices are still up 2 per cent on the March quarter last year but, judging by more current CoreLogic figures, this is likely to tip into declines within the next quarter or two....


http://www.abc.net.au/news/2018-06-19/house-price-falls-from-if-to-how-much/9886...



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Bobby
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Re: House price collapse already started !!
Reply #1 - Jun 20th, 2018 at 7:02pm
 
More from the ABC

http://www.abc.net.au/news/2018-06-19/fears-as-interest-only-loans-roll-into-pri...


Fears of housing 'fire sale' as interest-only loans roll into principal plus interest.

7.30
By Liz Hobday

Updated about 7 hours ago


As property prices in Australia have climbed over the past few years, thousands of Australians desperate to get a foothold on the property ladder have used interest-only loans.

But the interest-only period on these loans doesn't last forever.

Over the next three years, interest-only loans worth a combined total of about $360 billion will roll over to interest plus principal — and that means borrowers will face higher repayments.

"The kind of nightmare scenario is where a lot of people need to sell at once, and that's when you see a kind of fire sale mentality, and could see very significant downward pressure on prices," said Professor Richard Holden from the University of New South Wales Business School.

"That puts the banks under stress, and their balance sheets under stress, and it could lead to significant financial instability."
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Sir lastnail
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Re: House price collapse already started !!
Reply #2 - Jun 20th, 2018 at 7:06pm
 
Bobby wrote on Jun 20th, 2018 at 7:02pm:
More from the ABC

http://www.abc.net.au/news/2018-06-19/fears-as-interest-only-loans-roll-into-pri...


Fears of housing 'fire sale' as interest-only loans roll into principal plus interest.

7.30
By Liz Hobday

Updated about 7 hours ago


As property prices in Australia have climbed over the past few years, thousands of Australians desperate to get a foothold on the property ladder have used interest-only loans.

But the interest-only period on these loans doesn't last forever.

Over the next three years, interest-only loans worth a combined total of about $360 billion will roll over to interest plus principal — and that means borrowers will face higher repayments.

"The kind of nightmare scenario is where a lot of people need to sell at once, and that's when you see a kind of fire sale mentality, and could see very significant downward pressure on prices," said Professor Richard Holden from the University of New South Wales Business School.

"That puts the banks under stress, and their balance sheets under stress, and it could lead to significant financial instability."


How was this allowed to happen ?

No wonder mal and co was totally against the RC for fear of spooking the markets. Lets see if the "supply and demand" bullshit they go on about here can stop house prices from collapsing Cheesy LOL
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Bobby
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Re: House price collapse already started !!
Reply #3 - Jun 20th, 2018 at 7:09pm
 
Hi Nail,

interest-only loans worth a combined total of about $360 billion.


There should be questions in parliament -

it's a scandal.
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Sir lastnail
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Re: House price collapse already started !!
Reply #4 - Jun 20th, 2018 at 7:12pm
 
And this !!

Quote:
Six months ago Professor Holden said there was a risk the Australian housing market could face a US-style meltdown, and he maintains there is a risk that downward pressure on prices could lead to financial instability.


Idiot aussies never learned anything from the GFC and just kept inflating the bubble when the rest of the world was doing the complete opposite !!
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Setanta
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Re: House price collapse already started !!
Reply #5 - Jun 20th, 2018 at 7:15pm
 
Unfortunately I only see that happening in the capitals and we don't live in one. My son is looking for a house and we are seeing 80 or more people through desirable properties and then bidding wars happen. I wonder how many of these people are escaping the cities, Brisbane and Sydney.


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nu ninda an ezzateni watar ma ekuteni
 
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Gordon
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Re: House price collapse already started !!
Reply #6 - Jun 20th, 2018 at 7:25pm
 
Prices have dropped a smidge in Sydney and guess what the result is.
Buyer support is coming back.

Also in Sydney, units in areas of over supply are getting hammered, but good houses in good areas haven't moved much.

There will be no bust.
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Sir lastnail
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Re: House price collapse already started !!
Reply #7 - Jun 20th, 2018 at 7:25pm
 
Setanta wrote on Jun 20th, 2018 at 7:15pm:
Unfortunately I only see that happening in the capitals and we don't live in one. My son is looking for a house and we are seeing 80 or more people through desirable properties and then bidding wars happen. I wonder how many of these people are escaping the cities, Brisbane and Sydney.




The contagion will spread once the cheap line of credit dries up !! You can have all of the aspirational demand that you want but without the credit to pay for it means nothing !
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Gordon
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Re: House price collapse already started !!
Reply #8 - Jun 20th, 2018 at 7:26pm
 
Setanta wrote on Jun 20th, 2018 at 7:15pm:
Unfortunately I only see that happening in the capitals and we don't live in one. My son is looking for a house and we are seeing 80 or more people through desirable properties and then bidding wars happen. I wonder how many of these people are escaping the cities, Brisbane and Sydney.




I had a good hard look at moving to the Goldie, even phoned a few agents and they said they get at least as many inquiries from Sydney buyers as local.
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Sir lastnail
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Re: House price collapse already started !!
Reply #9 - Jun 20th, 2018 at 7:27pm
 
Gordon wrote on Jun 20th, 2018 at 7:25pm:
Prices have dropped a smidge in Sydney and guess what the result is.
Buyer support is coming back.

Also in Sydney, units in areas of over supply are getting hammered, but good houses in good areas haven't moved much.

There will be no bust.


That's exactly what they said in Ireland and "the doomsayers should go and hang themselves" said one politician Cheesy LOL

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Secret Wars
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Re: House price collapse already started !!
Reply #10 - Jun 20th, 2018 at 7:28pm
 
Gordon wrote on Jun 20th, 2018 at 7:25pm:
Prices have dropped a smidge in Sydney and guess what the result is.
Buyer support is coming back.

Also in Sydney, units in areas of over supply are getting hammered, but good houses in good areas haven't moved much.

There will be no bust.


Well that's no good, Lastnail is relying on one so he can quit couch surfing.  Smiley
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Gordon
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Re: House price collapse already started !!
Reply #11 - Jun 20th, 2018 at 7:29pm
 
Sir lastnail wrote on Jun 20th, 2018 at 7:27pm:
Gordon wrote on Jun 20th, 2018 at 7:25pm:
Prices have dropped a smidge in Sydney and guess what the result is.
Buyer support is coming back.

Also in Sydney, units in areas of over supply are getting hammered, but good houses in good areas haven't moved much.

There will be no bust.


That's exactly what they said in Ireland and "the doomsayers should go and hang themselves" said one politician Cheesy LOL


LOL, we're not Ireland.

Support for quality properties in the Sydney market has already returned.
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Setanta
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Re: House price collapse already started !!
Reply #12 - Jun 20th, 2018 at 7:33pm
 
Sir lastnail wrote on Jun 20th, 2018 at 7:25pm:
Setanta wrote on Jun 20th, 2018 at 7:15pm:
Unfortunately I only see that happening in the capitals and we don't live in one. My son is looking for a house and we are seeing 80 or more people through desirable properties and then bidding wars happen. I wonder how many of these people are escaping the cities, Brisbane and Sydney.




The contagion will spread once the cheap line of credit dries up !! You can have all of the aspirational demand that you want but without the credit to pay for it means nothing !


You don't need to do interest only loans here. A really nice house is not 2 million.
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Bobby
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Re: House price collapse already started !!
Reply #13 - Jun 20th, 2018 at 7:36pm
 
Gordon wrote on Jun 20th, 2018 at 7:29pm:
Sir lastnail wrote on Jun 20th, 2018 at 7:27pm:
Gordon wrote on Jun 20th, 2018 at 7:25pm:
Prices have dropped a smidge in Sydney and guess what the result is.
Buyer support is coming back.

Also in Sydney, units in areas of over supply are getting hammered, but good houses in good areas haven't moved much.

There will be no bust.


That's exactly what they said in Ireland and "the doomsayers should go and hang themselves" said one politician Cheesy LOL


LOL, we're not Ireland.

Support for quality properties in the Sydney market has already returned.



What about over priced units with a body corporate to deal with?
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Setanta
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Re: House price collapse already started !!
Reply #14 - Jun 20th, 2018 at 7:46pm
 
Bobby wrote on Jun 20th, 2018 at 7:36pm:
Gordon wrote on Jun 20th, 2018 at 7:29pm:
Sir lastnail wrote on Jun 20th, 2018 at 7:27pm:
Gordon wrote on Jun 20th, 2018 at 7:25pm:
Prices have dropped a smidge in Sydney and guess what the result is.
Buyer support is coming back.

Also in Sydney, units in areas of over supply are getting hammered, but good houses in good areas haven't moved much.

There will be no bust.


That's exactly what they said in Ireland and "the doomsayers should go and hang themselves" said one politician Cheesy LOL


LOL, we're not Ireland.

Support for quality properties in the Sydney market has already returned.



What about over priced units with a body corporate to deal with?


Unit prices are going down here, have been for a year, house prices still rising.
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