Australian Property Back To Boom Times?

6416.0 - House Price Indexes: Eight Capital Cities, Jun 2009

Well the ABS has just released the latest figures and it would seem that in the June quarter property buyers have thrown caution to the wind and taken the plunge, driving property prices around Australia up by 4.2% for the quarter.

The best gains were seen in Sydney and Melbourne with 4.9 and 5.2% growth respectively.

What does everyone reckon?

 

The force of the bubble is crushing....

Interesting to note year on year, property has declined -1.5%.

 

????
what does this mean?

 

It’s the reward for all the people with strong stomachs holding onto the assets during the doom&gloom era. Also credit to all of the people who managed their affairs during the though economic times and didn’t crush under the media pressure.
I hope some of us learned much during the past 18 months.

 

Let us not forget the little underachievers of the crisis, the Government and the RBA who dumped money onto the economy like its never seen before! FHOG boosts, cash handouts, unprecidented rate cuts.

You have got to be thankful we live in the lucky country were the above institutions has room to move.

That said I'm personally of the opinion this "doom & gloom" saga hasn't finished just yet, we have many more months to go before we know if we are out of the woods yet.

I hope everyone learns a lot all the time... it's the only way to substantial wealth.

 

dudek

It's not exactly a boom,
areas which have seen capital gains are simply getting back to their 2006 level

 

Bill,

You are correct. I would not call it boom but results are much better than predicted by so called experts. People such as Professor Keen refused to acknowledge simply fact that Sydney prices were going backward since 2004.
Is he "keen" to acknowladge that he was wrong? 40% corection in Real Estate is comming since 2007.

Chris, no one argues that economy is booming but I know few of us will emerge bit richer than before “greatest depression since 30’s”

WIN is a WIN, no matter how you call it.

 

True, I am not complaining

 

Chris,
I am cautious about the boom but then again I was cautious about the bust or decline. Median prices are very difficult to place much faith in without an appreciation of what they consist of. I know from client feedback in Melbourne, prices of the lower priced properties have risen due to affordability with the low interest rates and assisted by the FHOG boost and state bonuses but in the areas investors are buying in, it is more about affordability and rising rents. The purchase equation is much closer to renting than it has been for many years.

Median prices dropped last year due to the reduced volume at the higher end of the market more so than any general price drop. I think what we are seeing now is the more general trend of stronger prices at the bottom and middle tiers of the market. There is also some evidence of share market investors having lost faith or perhaps diversifying a little from just being share market investors.

The issue of demand and supply still exists and while there is imbalance, prices will move accordingly.

 

Greg
what work do you do?
cheers

 

Bill,
I am a finance strategist and mortgage broker. I specialise in the multiple property investor market and finance for seniors and do some work with the ADF members. I am an investor myself and am interested in learning. You can get a feel of what I do on Reid Consultants | Mortgage broker, Williamstown, Melbourne, home loans, commercial finance, reverse mortgages, seniors of you are interested.
Greg