Australian house prices are ‘the best in the world’ claims the IMF, but is it genuine? We have lately seen some softening of residential house charges, specifically in Victoria, but there are also indications of weakness in other regions, notably people which are not right connected to the mining boom. Is it the reckoning the bears have been waiting for, or simply a comfortable patch in a wider acceleration that will keep on thank you to a rising population, a shortage of housing stock and the effective extended time period effects of negative gearing. Company Spectator has obtained a status as one of the prime debating arenas more than residence costs in the Australian media. Join Managing Editor James Kirby, economist Steve Keen and HIA’s Harley Dale to hear what lies in shop for the subsequent 12 months.
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Tags: Prices
@dqk648nw In 2000 you could rent a house for $150 per week now $300 + per week. If you were earning $30K you could buy a place for $120K. Average house prices are now based on 2 incomes. I doubt that the majority of peoples income has increased by a factor of 3 in the same time frame. Lose money led to increased house prices, now it has tightened house sales have declined. So have prices to some extent. I’m not claiming 30 yo’s to be victim’s just making an observation.
@TheNanoNinja – maybe it’s also got to do with much more stringent lending criteria? bad credit NOT okay anymore? car loans? gadget loans? if yo’re 30 and at home – you’re lazy, not a victim.
I wouldn’t say that Steve Keen is either positive or negative. He is just pointing out the way it is. Just because its not the answer your hoping for why is it negative?
Keens comment about rental prices was accurate. Why are 30 yo’s still living with their parents? Because houses cost too much. Pleanty of perople with money now choose not to buy now. Anyone who bought a rental in the last 5 years is losing money and can’t sell to get out.