IMF hits Aussie house price crash panic button (updated)




Search  

ORIGINAL POST

Posted by Ed 11 mths ago
It is rare that a housing market makes such a beautifully defined U-turn, after a long hard surge.
In Sydney, Australia’s largest housing market and one of the world’s biggest housing bubbles, prices of homes of all types fell 5.4% in July compared to a year ago, and 5.5% from the peak in September. Prices of single-family houses dropped 7.0%, and prices of condos (“units”) fell 1.6%, according to CoreLogic’s Daily Home Value Index:

https://wolfstreet.com/wp-content/uploads/2018/08/Australia-home-prices-Sydney-2018-08-01.png


More https://wolfstreet.com/2018/08/01/house-price-bubble-sydney-melbourne-australia/

COMMENTS

Ed 11 mths ago
The most expensive quarter of the market got hit the hardest, with prices down 8.0% in July compared to a year ago. Across the so-called “most affordable quarter of the market” – “least unaffordable” would be more appropriate – prices fell by 1.8%.

And supply in Sydney is starting to come out of the woodwork: Total number of homes listed for sale in July, at 26,103, was 22% higher than a year earlier, and according to CoreLogic, the most since July 2012.

And so goes the rental market, where “conditions eased further in July,” CoreLogic noted in its report: In Sydney rents fell 0.4% year-over-year. While that might not sound like much of an annual decline, it is “the largest decline on record” in CoreLogic’s data going back over a decade.

Ed 11 mths ago
https://wolfstreet.com/wp-content/uploads/2018/08/Australia-home-prices-Melbourne-2018-08-01-1.png

gdep 11 mths ago
This is called Selective Graphing. 5% correction from top is barely anything .

Ed 11 mths ago
Vancouver Home Sales Crash 30%

What happens when prices rise so high that a chasm forms between bids and asks? The market grinds to a halt.

That's what happened in Vancouver housing in July, when according to the Real Estate Board of Vancouver (REBGV), residential property sales tumbled by 14.6% from June 2018, and a whopping 30.1% from one year ago. In fact, a total of only 2,070 transactions took place which was the fewest since the year 2000, as both buyers and sellers continue to sit on their hands amid confusion whether the recent price gains will continue or whether the housing bubble has burst.

Sales of detached properties in July was just 637, a decrease of 32.9% from the 949 recorded in July 2017, and the 1,079 apartment sold was a 26.5% drop compared compared to the 1,468 sales in July 2017.

And no, it's not seasonal: last month’s sales were 29.3% below the 10-year July sales average.

The reason for the collapse in transactions: the formerly all too willing buyers, mostly Chinese oligarchs who would use Vancouver real estate as their offshore Swiss bank account, have disappeared.

"With fewer buyers active in today’s market, we’re seeing less upward pressure on home prices across the region," Phil Moore, REBGV president said. "This is most pronounced in the detached home market, but demand in the townhome and apartment markets is also relenting from the more frenetic pace experienced over the last few years."

https://www.zerohedge.com/news/2018-08-02/vancouver-home-sales-crash-30-drop-lowest-18-years

Ed 3 mths ago
We've got another update... the property downturn in Australian is now infecting most capital cities in the country .... where property prices continue to fall... albeit more slowly....

In March the average median price of a residential property fell 0.6%


https://www.abc.net.au/news/2019-04-01/australian-property-price-downturn-spreading-corelogic-finds/10957996?section=business&fbclid=IwAR1PdN0LQfG0ELB8yfdYm-SfnB4_PdkQIpxan_swfsFOPG7daL27ix9KYes

Ed 3 mths ago
House prices continue to fall in major Australian cities... Sydney and Melbourne are down nearly 1% from Feb to March...


https://wolfstreet.com/wp-content/uploads/2019/04/Australia-home-prices-Sydney-2019-03-31-.png


https://wolfstreet.com/wp-content/uploads/2019/04/Australia-home-prices-Melbourne-2019-03-31.png


Why?

https://wolfstreet.com/2019/04/02/update-on-the-spreading-housing-bust-in-australia-and-why-its-happening/

Ed 2 mths ago
'We've never seen it as bad as it is': Researchers issue warning on Mortgage Defaults across Australia

“Researchers indicate that across the nation mortgage defaults are at the highest levels that they have been in nearly twenty years."

https://www.abc.net.au/news/2019-04-05/researchers-warn-of-rising-mortgage-stress/10972682

Ed 2 mths ago
Almost Half of New Units That Settled In Sydney And Melbourne Last Month Were Worth Less Than What They Were Purchased For"


lmost half of all new units in Sydney and Melbourne that settled in February were worth less than what they were originally purchased for, according to data from CoreLogic.

Over the past year, median unit prices in Sydney have fallen by 7.8%. In Melbourne, median prices have fallen by a smaller 3.7% over the same period.

With prices in both cities continuing to fall and with a strong pipeline of new units still being built, settlement risks for both buyers and developers may remain elevated for several years yet.


https://www.businessinsider.com.au/australia-property-market-off-the-plan-prices-negative-equity-2019-3

Ed 2 mths ago
Australian property market contracting faster than predicted according to IMF analyst

https://finance.nine.com.au/2019/04/08/12/20/australian-property-market-contracting-faster-than-predicted-according-to-imf-analyst




IMF hits Aussie house price crash panic button

Australia’s housing market contraction is worse than first thought, says a top IMF analyst, leaving the economy in what he called a “delicate situation” that boosts the need for faster infrastructure spending and even potential interest rate cuts.

https://www.macrobusiness.com.au/2019/04/imf-hits-aussie-house-price-crash-panic-button/

Ed 43 days ago
Can Australia’s Housing Bust Morph into a Financial Crisis?

As the housing bust in Australia progresses in its methodical manner, will it trigger a mortgage crisis that hits the big four banks, and the remainder of Australia’s financial system to the point where there’s a banking panic and a financial crisis in Australia? And what will this do to the global financial system? (12 minutes)


https://youtu.be/Cp_nj8DfyTE

Ed 33 days ago
Australia's Imploding Housing Market Now Threatens To Unleash Nasty Recession

https://www.zerohedge.com/news/2019-04-02/australian-housing-downturn-becomes-widespread-corelogic



https://www.zerohedge.com/s3/files/inline-images/2019-05-13_07-53-49.png


< Back to main category


>

Login now