Perth Housing Downturn Sees Homeowners Turn To Renting: "Some desperate Perth homeowners battling to sell their properties are turning to the rental market to ride out the tough times.
As the market for sales stagnates, those homeowners suffering mortgage stress and unable to offload their properties have turned to renting them out to pay the loan.
Thursday, November 11, 2010
Home prices down but most ahead - The West Australian
Home prices down but most ahead - The West Australian: "WA homes are worth less than they were in 2007 but values have jumped nearly 50 per cent since the pre-boom days of 2005, according to new research.
Real estate consultancy RP Data shows property values have taken a battering in recent years, with the State median for all dwellings sitting 1.6 per cent lower than at the peak of the boom.
The median for both homes and units was now $460,000 in WA, slightly down from $467,000 in mid-2007.
Real estate consultancy RP Data shows property values have taken a battering in recent years, with the State median for all dwellings sitting 1.6 per cent lower than at the peak of the boom.
The median for both homes and units was now $460,000 in WA, slightly down from $467,000 in mid-2007.
Wednesday, November 10, 2010
Joye offers US guru $100m housing bet | The Australian
Joye offers US guru $100m housing bet | The Australian: "CHRISTOPHER Joye, an Australian property market bull, yesterday offered US guru Jeremy Grantham a $100 million bet on house prices.
.Mr Joye, managing director of property research group Rismark International, challenged his equally vocal sparring partner, GMO Capital founder and chief investment strategist Mr Grantham, to put his 'money where your mouth is' on the issue of whether Australia really is in a property bubble.
Mr Grantham's downbeat views on Australia's home prices were 'sensationalist and spurious', Mr Joye said.
He challenged Mr Grantham to bet the $100m over a three-year term, basing the outcome of the bet on movements in the RP Data-Rismark Australian Capital Cities Dwelling Price Index.
For every 1 per cent rise in the index, Mr Grantham would pay $1m, Mr Joye said. But for every 1 per cent decline in the index, Mr Grantham would receive $1m.
.Mr Joye, managing director of property research group Rismark International, challenged his equally vocal sparring partner, GMO Capital founder and chief investment strategist Mr Grantham, to put his 'money where your mouth is' on the issue of whether Australia really is in a property bubble.
Mr Grantham's downbeat views on Australia's home prices were 'sensationalist and spurious', Mr Joye said.
He challenged Mr Grantham to bet the $100m over a three-year term, basing the outcome of the bet on movements in the RP Data-Rismark Australian Capital Cities Dwelling Price Index.
For every 1 per cent rise in the index, Mr Grantham would pay $1m, Mr Joye said. But for every 1 per cent decline in the index, Mr Grantham would receive $1m.
Still Speculating In Australian Housing: More Punch, Mate! - Great Speculations - Buys, holds, and hopes - Forbes
Still Speculating In Australian Housing: More Punch, Mate! - Great Speculations - Buys, holds, and hopes - Forbes: "Leading up to Japan’s bursting real estate bubble in 1990, we were told that this time was different: house prices simply reflected the growing economic power of Japan Inc. and there was a land shortage in overcrowded Tokyo. Today, Japanese real estate prices are still less than 50% of that peak value reached more than two decades ago. During the U.K. bubble, Brits blamed zoning requirements for creating land shortages until prices crashed to the lowest multiple of income on record in 1997. Similarly, builders in Northern Ireland predicted severe housing shortages if planners did not release more land in 2003. And before America’s bubble burst, there were land shortages across the country, from Florida’s undeveloped west coast to the deserts of Nevada.
While prices at home have already fallen 30% from their peak, they’d have to fall another 45% just to reach the long term trend, which according to Robert Shiller, has been flat in real terms for three and a half centuries!!
While prices at home have already fallen 30% from their peak, they’d have to fall another 45% just to reach the long term trend, which according to Robert Shiller, has been flat in real terms for three and a half centuries!!
Aussie Housing Bubble Gets Popped With Chinese Credit Crash - Great Speculations - Buys, holds, and hopes - Forbes
Aussie Housing Bubble Gets Popped With Chinese Credit Crash - Great Speculations - Buys, holds, and hopes - Forbes: "Australian real estate is at 7.5 times family income today – twice the price it should be according to GMO data, and needs to decline by over 40 percent to return to trend.
Monday, November 8, 2010
Three homes repossessed a day - The West Australian
Three homes repossessed a day - The West Australian: "More than three WA families every day are having their house repossessed, with banks foreclosing on 306 properties between July and September.
The latest statistics show the foreclosure rate is currently at one of its highest in the past decade, with more homes taken in the past quarter than in almost any other three-month period since 2000.
The latest statistics show the foreclosure rate is currently at one of its highest in the past decade, with more homes taken in the past quarter than in almost any other three-month period since 2000.
Sunday, November 7, 2010
Housing price slump - ABC News (Australian Broadcasting Corporation)
Housing price slump - ABC News (Australian Broadcasting Corporation): "Figures from the Real Estate Institute of WA for the September quarter show Perth's median house price has fallen by $20 000, whilst the median land price has skyrocketed.
Friday, November 5, 2010
Perth housing market slumps to 20-year low - The West Australian
Perth housing market slumps to 20-year low - The West Australian: "'Some areas are experiencing the strongest buyers' markets we've seen in decades,' Mr Bourke said. 'There are some nervous investors out there who are worried about rising interest rates and weak rental yields.'
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