Median house prices for the March quarter:
- Sydney: fell 0.3 per cent to $554,000
- Perth: fell 2.5 per cent to $460,000
- Canberra: fell 6.8 per cent to $445,000
- Melbourne: fell 8.4 per cent to $432,500
- Darwin: rose 1.8 per cent to $420,000
- Adelaide: rose 2 per cent to $362,100
- Hobart: rose 1.5 per cent to $335,000
Think you were having a bad time at the stock market , well you are not alone people who have invested in the land and housing sector are also suffering from a set back to thier
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investments and nowhere to go .. while there has been a decline in buying activity and the prices are at a standstill or falling lower.
So think ot over next time your friendly estate agent tells you that its the right time to buy that investment property when it might not be really true.
More signs have emerged that the house price boom is tapering off.
They’ve been happening all over the world but Australia’s property boom has been one of the juiciest. We now have one of the highest ratios of property prices to income in the OECD, and a population that thinks ‘property can’t fall’. That’s a recipe for disaster.
So what, you ask? What’s that got to do with picking stocks?
Residential housing AT LEAST 20% overpriced
Well, at $3.5 trillion, households’ investment in residential property is seven times larger than the wealth tied up in the stockmarket. A lot of plasma TVs and fuel guzzling Ford Territories have been bought on the back of a booming property market and easy credit. For the banks, property developers and anyone earning their bread from the Australian consumer, a 20% fall in the property market would be a disaster.
A survey by the Real Estate Institute has found there has been a softening in the growth of house prices in capital cities in the three months to March.
The median house price has fallen most dramatically in Melbourne, by more than 8 per cent.
“We’ve also got the uncertainty over the inflation the Government talks about, even the costs of food and petrol which are so much in the news at the moment, all those things are having an impact on the market.”
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