Society/Culture Australian Property Prices to Crash?

[Madas]

Unless you sell out of the market, its a paper loss.

That’s what I was trying to say but you said it better

 

[Madas]

Treechange and seachange places had been pretty stagnant for a decade or more. There was an even than capital city bigger post pandemic boost there. First places to suffer when the R word comes around

Not sure about other places but our little town isn’t going backwards in a hurry
Everything has been sold (land and established houses) and there is still demand.
In fact the big money is just starting to come out

People who have bigger budgets and others who have been sitting on large properties are now coming out of the woodwork as the stimulus crowd tapers off .

We have had a huge influx of 30 something year old Covid Refugees who seem to do a whole bunch of not much work wise .
I think a lot of them may have impulsively bought land without doing any homework on build costs and realised how ridiculously expensive it is to build in rural areas.

I wonder if they are FIFO or maybe living the inheritance/ Crypto dream ?
Buggered if I know

 

[Gigantic]

RBA spent a good part of the last decade constantly undershooting their 2-3% target. They've not had inflation within target for a while.

And because they're now so far behind the curve, they've overshot it.

All that being said, can only take the words coming out of Dr Lowe's mouth with a fine grain of salt.

 

[Kwality]

RBA spent a good part of the last decade constantly undershooting their 2-3% target. They've not had inflation within target for a while.

And because they're now so far behind the curve, they've overshot it.

All that being said, can only take the words coming out of Dr Lowe's mouth with a fine grain of salt.

Reserve Bank says inflation is rising, but he doesn't see a recession on the horizon​

Reserve Bank governor says inflation is rising, but he doesn't see a recession on the horizon

The RBA admits it suffered "reputational damage" when it tried to wind back its COVID-19 pandemic stimulus program.

www.abc.net.au

'He says the RBA still thinks inflation will hit 7 per cent this year, up from 5.1 per cent currently, but it is monitoring the situation.

Mr Lowe has also admitted the RBA suffered "reputational damage" when it tried to wind back its COVID-19 pandemic stimulus program.

Speaking on Tuesday at an event in Sydney, the RBA Governor said the share of items in the consumer price index (CPI) basket experiencing annual price increases greater than 3 per cent was at its highest level since 1990.'

I'd love to believe you Mr Lowe ... sorry Dr Lowe.

 

[Number37]

Reserve Bank says inflation is rising, but he doesn't see a recession on the horizon​

Reserve Bank governor says inflation is rising, but he doesn't see a recession on the horizon

The RBA admits it suffered "reputational damage" when it tried to wind back its COVID-19 pandemic stimulus program.

www.abc.net.au

'He says the RBA still thinks inflation will hit 7 per cent this year, up from 5.1 per cent currently, but it is monitoring the situation.

Mr Lowe has also admitted the RBA suffered "reputational damage" when it tried to wind back its COVID-19 pandemic stimulus program.

Speaking on Tuesday at an event in Sydney, the RBA Governor said the share of items in the consumer price index (CPI) basket experiencing annual price increases greater than 3 per cent was at its highest level since 1990.'

I'd love to believe you Mr Lowe ... sorry Dr Lowe.

Reap what you sow Dr Lowe.

Should have lifted rates in Feb or March or April, probably even December last year.

 

[Frank Grimes]

Lowering rates is fine but they waited way too long. We have known for months that inflation was going to go up a lot. And they sat on their hands.

The longer they waited the worse the housing market got.

The ironic thing thing is that they were reluctant raise rates because they didn't want to be seen as doing it because they are influenced by the upcoming election when not raising them is the result of that perception when in normal times they would have raised them.

 

[HairyO]

The ironic thing thing is that they were reluctant raise rates because they didn't want to be seen as doing it because they are influenced by the upcoming election when not raising them is the result of that perception when in normal times they would have raised them.

Really should have started before the election. Even a single rate rise would have scared the market in to settling down. But doing to opposite and declaring no rate rises for 18 months was just disgraceful. Should be sacked, but wont.

When youre earning $1m a year it would be an expensive sacking - even though there is cause so they should not pay one cent.

 

[Leeda]

musahi runs rings

 

[Saint]

RBA spent a good part of the last decade constantly undershooting their 2-3% target. They've not had inflation within target for a while.

And because they're now so far behind the curve, they've overshot it.

All that being said, can only take the words coming out of Dr Lowe's mouth with a fine grain of salt.

The RBA has stuffed this royally. I still don't know how they have a job. Just because they're independent doesn't mean they don't answer to anybody!

They fuelled a massive debt balloon and now they're deflating it far too quickly because they acted too slowly. They were 2 years off with the prediction of when rates would rise.

I don't think any other economist or even mild punter missed by as much as that. It's been nonsense predictions from them for over 6 months.

 

[Pessimistic]

On SBS tonight among all the justified stories about hardship etc, they said mhouseholds got substantially richer in the march quarter alone (mainly property and super)

 

[Golden_6]

On SBS tonight among all the justified stories about hardship etc, they said mhouseholds got substantially richer in the march quarter alone (mainly property and super)

Two things that really mean nothing. Property prices and super don’t help with an individuals cash flow and living standards with rising costs. Houses are an inflated asset and somewhat irrelevant (unless you’re buying/selling under different market conditions) and super is more or less irrelevant to most people unless you’re close to retiring.

 

[Kwality]

On SBS tonight among all the justified stories about hardship etc, they said mhouseholds got substantially richer in the march quarter alone (mainly property and super)

Its dollars in the pocket where inflation is felt, e.g $100+ to get out of a servo. Property values & super dont help feed the family.

 

[Pessimistic]

For sure I realise that. It was an insane percentage like over 30%

 

[HirdsTheWord]

Each market and each market segment is different. And each property in each segment is different. Etc.

I just think the 'x% across the board' type statements do nothing but create panic.

They do the same thing for price increases, its up to the individual to understand specific suburb data.

Panic goes both ways too, cant just allow panic when prices rise but when change the statement when it falls.

 

[HirdsTheWord]

On SBS tonight among all the justified stories about hardship etc, they said mhouseholds got substantially richer in the march quarter alone (mainly property and super)

What goes up must come down.

 

[Pessimistic]

What goes up must come down.

And vice versa if you look at any graph

 

[Dogs Rule]

Been in the UK for a few weeks now and there's very little of the doom we get about the economy and inflation and cost of living. It's there, but not shoved in your face every single minute of the day to the point people get so depressed they switch off. It's refreshing.

Also, fruit and vegetables and grocery prices are expensive but still a hell of a lot cheaper than Australia which is insane given the amount of food we produce. Fuel is $2 pound a litre (more than $3.30 Aus) and gas and electricity prices through the roof, inflation very high, but we don't hear about that every bloody minute either. It's a hell of a lot more pleasant.

So basically, I'll be tuning out to Australian media because I've now realised that they are so insular and unique in the world at making us feel like s*** about everything.

 

[HirdsTheWord]

Been in the UK for a few weeks now and there's very little of the doom we get about the economy and inflation and cost of living. It's there, but not shoved in your face every single minute of the day to the point people get so depressed they switch off. It's refreshing.

Also, fruit and vegetables and grocery prices are expensive but still a hell of a lot cheaper than Australia which is insane given the amount of food we produce. Fuel is $2 pound a litre (more than $3.30 Aus) and gas and electricity prices through the roof, inflation very high, but we don't hear about that every bloody minute either. It's a hell of a lot more pleasant.

So basically, I'll be tuning out to Australian media because I've now realised that they are so insular and unique in the world at making us feel like s*** about everything.

Australians are far more indebted than they are in the UK, so whilst its still probably an issue in the UK its far more worrying in Australia for obvious reasons.

All the idiots that went and got overleveraged hoping money was going to be cheap forever are about to pay the piper.

 

[darcytiger]

Been in the UK for a few weeks now and there's very little of the doom we get about the economy and inflation and cost of living. It's there, but not shoved in your face every single minute of the day to the point people get so depressed they switch off. It's refreshing.

Also, fruit and vegetables and grocery prices are expensive but still a hell of a lot cheaper than Australia which is insane given the amount of food we produce. Fuel is $2 pound a litre (more than $3.30 Aus) and gas and electricity prices through the roof, inflation very high, but we don't hear about that every bloody minute either. It's a hell of a lot more pleasant.

So basically, I'll be tuning out to Australian media because I've now realised that they are so insular and unique in the world at making us feel like s*** about everything.

Remember a big part of our food issue at the moment is due to weather, not just inflation.

 

[Dogs Rule]

Remember a big part of our food issue at the moment is due to weather, not just inflation.

True, but you get the feeling that the big supermarkets are taking the p*** now.

 

[Dogs Rule]

Australians are far more indebted than they are in the UK, so whilst its still probably an issue in the UK its far more worrying in Australia for obvious reasons.

All the idiots that went and got overleveraged hoping money was going to be cheap forever are about to pay the piper.

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Fair point, but I think the fact it gets rammed down our throats constantly in the news is getting a bit much. We all get it and sometimes I think it's a self fulfilling prophecy - you talk down things so much that people don't spend, confidence falls and the circle continues.

Also, the gaps between rich and poor is huge in the UK much bigger than Australia. Even those doing it tough in Australia are still much better off than their equivalents in the UK. As for the morons on $80k who borrowed $1million for their trendy inner city pads - I have no sympathy. None. They were warned.

 

[ElectricG]

As for the morons on $80k who borrowed $1million for their trendy inner city pads - I have no sympathy. None. They were warned.

Seems pretty harsh mate. They’ve been told the sky is falling for over a decade and watching the prices continue to increase in that time, so they’ve been forced to choose between the crash that never comes and being priced out of the market for ever.

 

[Cuzz09]

My fixed rate ends in oct 23.

Its fixed at 2.29

Current fixed 3 year rates are already nearly 6%

She's gonna be a big jump for me in Oct.

Im trying to pay equivalent of 6% now so Im used to it but I heard theres a lot of people who fixed their loans and will end around the same time.

Gonna get a few people i reckon.

On SM-G925I using BigFooty.com mobile app

 

[Nuggs Bunny]

Seems pretty harsh mate. They’ve been told the sky is falling for over a decade and watching the prices continue to increase in that time, so they’ve been forced to choose between the crash that never comes and being priced out of the market for ever.

Yeah this attitude is pretty distasteful, considering housing market growth is built on people buying in for the first time. Lots of people who've made a fortune off owning property are now laughing at the poor sods left holding the bag.

If you didn't buy in, you're a loser. If you did buy in, you're a sucker etc.

 

[HirdsTheWord]

Yeah this attitude is pretty distasteful, considering housing market growth is built on people buying in for the first time. Lots of people who've made a fortune off owning property are now laughing at the poor sods left holding the bag.

If you didn't buy in, you're a loser. If you did buy in, you're a sucker etc.

housing is as about a selfish as a market there is mate, distasteful stuff is part of the business.

A big reason why the property market is out of control is because people are over levering themselves, i cant say i have any sympathy either but its the government and the likes of the RBA & APRA who are to blame. They have actively chosen to ensure first home buyers wear all the risk, while people with already existing wealth reap the rewards through investment.

When your toddler eats too much candy and gets a tummy ache do you blame them? or the parents who let them do it?