Depends on who you ask.
Whether right or wrong – this sort of headline grabbing stuff comes out on a daily basis.
Must admit though, I've never seen it referred to a "bloodbath"
Nothing new here.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
What crap
First the article is 12 months old. In that time no massive falls. What a lot of these so called experts forget is that the Australian property market is mainly driven by owner occupiers not investors. In other words you have people living in a 1 million dollar suburb who buy and sell in the same suburb or the one next to it so they are not buying a property from 0 to one million they may be selling a house for $900,000 and buying one for 1 million.
The second point is that although in some states we saw values fall by 40% in most cases because of sub prime lending the markets were artificially stimulated that led to massive gains, in many cases far more than the properties were really worth and the price falls were also an over reaction.
In States like Texas where in most cases state laws required property purchases to have a 20% deposit the results were quite different and we saw very few falls in the property market occur there. So I cannot see anything that would cause such falls in Australia.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
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Very simplistic sensationalist view. Property is flat and will stay so for a while. Although continual building and renovation is improving the average of the stock, real movement if any, in recent years has been minimal. Factor inflation into the mix and it may have gone backwards in many areas.
The term bloodbath could apply to certain areas like the Gold Coast, but overall the market is flat and with employment still getting worse will continue to do so, until the economy improves.
gmh454 wrote:Very simplistic sensationalist view. Property is flat and will stay so for a while. Although continual building and renovation is improving the average of the stock, real movement if any, in recent years has been minimal. Factor inflation into the mix and it may have gone backwards in many areas.The term bloodbath could apply to certain areas like the Gold Coast, but overall the market is flat and with employment still getting worse will continue to do so, until the economy improves.
Jordan Wirsz is not that neutral in his review. Been biased towards driving investment from AU to USA market where he is positioned. You can see direct interest in scaring AU investors.
But, beside this I agree with gmh454. Was watching market since 2001, since my involvement. From 2008/2009, inflation corrected we are moving backwards. Not much, but good 2-3% year. I now make offer 10% below listed and it's a accepted norm. Use to have to offer asking or above to get vendor to sign the contract, back in 2006.
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