Higher property prices have created a sort of ‘wealth effect’ in recent years. That is, as asset prices increase, households feel that they have more money, so they spend more. Yet as the ABS pointed…
It’s easy to get caught up in all the hoopla when it comes to Australian housing.
It’s easy to be concerned about Australian housing prices, which seem to just climb higher and higher.
It’s easy to want to jump into the housing market and see your investment properties sore.
It’s also easy to make a stupid mistake, or pass on a perfect opportunity, if you don’t know the facts.
That’s what the team at Markets & Money are here for.
A brief History of Australian Housing
Since the 1990s — when property prices freakishly increased higher than inflation— we’ve seen prices steadily soar.
But it got even more weird than that.
In the late 2000s, property markets all over the world were crashing left, right and centre. The GFC had stomped over houses across the globe. And yet…
Australia’s housing market continued to rise.
And guess what? It’s still rising.
Unfortunately, our wages are not.
So it isn’t surprising that, in 2016, Australian households took the record for the most over-indebted households in the world.
Needless to say, we weren’t celebrating.
Sydney and Melbourne are becoming part of the most expensive property markets in the world. 800,000 of those over-indebted homes sit in one of these two cities.
When will the real estate bubble form? Or are we already in one? Is the bubble about to pop? Or are the walls getting stronger, making our prices go higher?
How You Can Read the State of Australian Property
One way to get to the real story is to follow listed companies that are tied to the Australian housing market.
If housing is indeed being stretched, then the first signs of stress will show in these companies as softening demand. And that softening demand will show up in the company price chart. Guaranteed!
But if stocks in this sector are mostly making new highs, it means company revenues are growing. Thus, Aussie housing still has steam to run.
It’s our job here to give you the updates on these listed companies.
The latest news on the Australian Housing Market
At Markets & Money we keep a close eye on these indicators.
And we will let you know exactly what the outlook is for the Aussie housing market.
With updates daily, you’ll be able to knock on anyone’s door and tell them how the market is performing at any moment.
Looking at the statistics, it seems that for young people, purchasing their own home is a dream that has become so out of reach that it’s almost been disregarded as fantasy. According to HSBC bank,…
One of the things that really rubs mortgage holders the wrong way is interest rates. Or more to the point, how and when the banks change their rates. Earlier this week, Macquarie was first cab…
Things are getting tougher in the housing market. Not only because lenders are looking at applicant’s expenses much closer than they did before, but it also looks like lenders are reducing lending amounts.
The fact that Sydney and Melbourne’s property values are dropping will have a big impact on the Australian property market.
Not long ago, the RBA’s rate decision used to be widely anticipated and reported. Now it barely gets any fanfare.
The decline in property prices has been slow so far…some are even saying the worst is over. But, is it?
Property buyers aren’t in such a rush to get onto the market anymore. The truth is that the property market is slowing…and prices are falling.
There’s been more positive news for Australian homebuilder, land developer, and registered training organisation Simonds Group Limited [ASX:SIO] this month. In fact, earlier this morning we saw a massive growth in their share price of 21.02%.
Two avocados for $4 dollars. Bargain! Want to hear about another Australian staple that is also looking at lower prices? Property.
You may have noticed that things have been pretty good lately. The economy is booming. Unemployment is down. And market sentiment is, generally, pretty cheerful. Overall, Australia has been a place of sunshine and financial…
In a recent poll, 49% of adults said they would never be able to afford a home in Australia. When does the bubble end? When only 1% can afford the median home?
Markets cannot completely collapse, whilst everyone is expecting one. Markets just don’t work like that. Markets can only collapse when everyone is fully invested and there’s only blue skies ahead.
A slowdown on the property market could mean we see an end to the wealth effect. What’s the ‘wealth effect’?
This ‘Afterpay for real estate’ scheme is the latest initiative from sellers to try and breathe life into a deflating property market. Lenders and developers are getting creative with incentives as the property market slows…