Housing price downturn accelerates as 'perfect storm' hits market (www.abc.net.au)

submitted 1 week ago by Eyekaytee@aussie.zone to c/news@aussie.zone

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[-] minty@aussie.zone 10 points 1 week ago

I just hope that this trend continues even after:

Investors calm down / become more certain
Interest rates go down

[-] thatKamGuy@sh.itjust.works 1 points 1 week ago

Me too; and that’s as someone already paying off a mortgage.

I want a bright future for all of our kids, where they’ll be able to afford a home and raise happy families for their own.

While I don’t think the proposals in the budget go far enough to fully ensure such a future - it is already much better than doing nothing at all.

At least this way, the landlord-investor class will be funnelled into building new homes, increasing the overall pool available - and hopefully applying some downward pressure on price increases of existing homes.

Though I do foresee a surge in building demand causing a blow-out in labour and materials costs in the very short term while those industries ramp up to meet an increased demand.

[-] arran4@aussie.zone 6 points 1 week ago

Loss aversion; the prices going down will be announced far more loudly than the prices going up.

[-] No1@aussie.zone 1 points 1 week ago* (last edited 1 week ago)

I was watching a podcast that was looking at the current housing market and drew comparisons to what they thought were the closest comparisons - NZ and Canada.

Both of those dropped about 20% from their peaks.

The main difference pointed out between them and Oz is the immigration levels. Ours is much higher.

The guy put down our high immigration levels to the federal government being incentivised because our tax is slanted to salary and wages, and more immigrants means more tax. Also, the expense side for services and infrastructure hits state and local governments.

The dirty secret is that we would be in recession except for high immigration levels. Gross GDP only is growing because of immigration.

So, while NZ and Canada dropped rather quickly, we are in a different situation.

If prices drop, it's hard to predict if it will be a bushfire or slow controlled burn.

[-] Gorgritch_umie_killa@aussie.zone 3 points 1 week ago* (last edited 1 week ago)

Yeah the guys talking out his arse on immigration being so the government can have some tax. That podcaster sounds like some neoliberal low/no tax wanker.

The second part you mention about going into recession without a reasonable level of immigration is absolutely the driving reason. No government wants to be in power when a recession occurs, whether they've been a cause in it or not.

Edit: agree with your/their conclusion its hard to know whether its going to be a controlled burn or a bushfire. Regardless no one should've looked at the price inflation in housing these last few years as sustainable or bankable to lock into their budgeting and planning. Things have to change in this country, the inequality and rising precarity in people's lives is really starting to bite. We also need to spend less money and time on so many frivolous follys that don't have a real investment return (financial or physical) and speculation as investment.