When will house prices bottom in 2023? | The Business | ABC News
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- Опубліковано 12 чер 2024
- How deep will the housing downturn go? We speak to property analysts, economists, and real estate agents about whether prices will rebound in 2023, plus we get top tips on buying and selling in this market.
00:00 Introduction
0:53 - 5:40 Rising rates hit prices again in November
5:41 - 6:42 What happened to house prices in 2022?
6:43 - 8:00 What to expect in 2023
8:01 - 9:12 Interest rate predictions?
9:13 - 9:56 Who's entering the market?
9:57 - 11:31 Auction trends
11:32 - 11:59 Auction tips for buyers
12:00 - 12:23 Auction tips for sellers
12:24 - 13:04 Are vendors being realistic?
13:05 - 13:16 Will prices continue to come down?
13:17 - 13:51 Tips from an estate agent for sellers
13:52 - 14:13 Tips from an estate agent for buyers
14:14 - 17:16 Meet Australians trapped in a mortgage prison
17:17 - 21:14 How to prepare for the incoming 'mortgage cliff'
21:15 - 24:34 Why is the rental market so tight?
24:35 - 25:36 Could the rental market get even tighter?
25:37 - 26:44 What's in store for rents in 2023
26:45 - 29:34 The looming climate sub-prime mortgage crisis -
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I love the insightful tip the real estate agent gives for prospective buyers at auctions…”you need to bid”. Incredible 👏
What tips do you have?
@@JustaSpaceCowboy I’m not a real estate agent
Hahahha 🤣🤣🤣
@@JustaSpaceCowboy don't use an agent who hi-balls your house by $600K.
Any real estate agent would have the advice buy, buy, buy it is their best interests, but not yours.
I love how you're asking real estate agents these questions. Like, never ask a fish where the best places to go fishing are and never ask a shark where you'll be safe from his jaws.
This felt more like real estate industry hype than serious ABC journalism.
ABC doesn't do journalism or they'd be looking into the unprecedented excess death rate.
yep, you are right mate. They recycle the same 'industry experts' every time.
A massive plug to the Real estate vultures out there. These greedy fks have no scrupples or shame.
It took a whole 4 and a half minutes of watching for me to come to the same conclusion. I pity those with large mortgages.
Exactly.
So far this feels like Ireland in 2009. It took 5 years for that housing bubble to burst, finally bottoming out in 2013.
At the end of the day, a recession is coming, and with it, higher unemployment, less immigration and higher interest rates.
This is not a recipe for a soft landing.
When it does burst, there will be questions about the flimsy regulation that led to the bubble and all the gov policies (negative gearing anyone?) that led to it will be reversed. That in turn will leed to a slow recovery.
Market declines, soaring inflation, a significant increase in interest rates by the Fed, and rising Treasury yields all point to additional losses for portfolios this quarter. How can I profit from the present market turbulence? I'm still debating whether to sell my $125,000 ETF/Growth Stock portfolio.
Concentrate on two main objectives. First, keep yourself safe by knowing when to sell stocks in order to limit losses and maximize gains. Second, get ready to benefit from market changes. I advise consulting a CFP or other professional for advice.
Yes, I have been in touch with a CFP ever since the outbreak. Today, investing in hot stocks is quite easy; the difficult part is deciding when to buy and sell. With an initial starting reserve of $80k, my adviser chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
@@johnlennon232 my 401k growth has been stagnant since the 2019. I wouldn't mind consulting the advisor who guides you, I really want to grow my retirement fund since I could retire in 3 years.
@@kimyoung8414 The stock market is without a doubt the awkward teenager with the most extreme mood swings! I started out with a commentator named “HEATHER ANN CHRISTENSEN.” Her honest approach gives me complete ownership and control over my position, and her rates are incredibly affordable given my ROI.
@@johnlennon232 Thanks, I just googled her and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.
It blows my mind that people wonder if "house prices will recover" like it's somehow normal for it to be so high.
Exactly. It's not a " housing downturn" , it's a housing correction after the pevertedly low interest rates and non stop govt stimulus of the past 20 years.
the money is being printed
Properties are always pricy
@@ericshang7744 due to speculation and the false expectation that house price will only increase no matter.. (guaranteed investment... Too good to be true) it's become a ponzi scheme vehicle.
@@ericshang7744 and always will be pricy
I really like the clip of the sisters struggling with their mortgage, unpacking their brand new leather couch.
Journos always do that. The ABC is often guilty. They will show a woman in a supermarket complaining about food prices and they will make sure that there are chocolate biscuits in her trolley.
ahahah
The lady scared she will have to work full time. To pay off a house. These are tough times.
It was an electrically controlled reclining cinema couch, and their mum was paying the loan while they contemplated mortgage prison time. Fortunately the budget still stretched to Botox for the recently unemployed sister.
A real tragedy unfolding there.
@@diymkearing3205 Absolutely unthinkable! Thoughts and prayers to all concerned.
Fantastic news. Hopefully they go back to 2004 levels. You know, so prices are in line with wages
Nice dream
keep dreaming brother, it won't happen. Rates expected to increase once more, before the pauses commence, and the banks start to lobby the RBA to drop rates and get the loan books moving again.
😂🤣
@@johnny-yi2oi banks can’t lobby for rate changes. Rate changes are a managment instrument essentially the throttle controls of the economy
This piece was more about methods to adapt to a unhealthily inflated market rather than addressing the horrendous social damage Australian housing is having on upcoming generations.
Too many real estate agent opinions sourced which is not really palatable when selecting an ABC story about the market.
Tbh it feels were are doing everything we can to make investors feel warm and fuzzy while gouging the pockets of the young.
Next time focus on the data ABC and leave the agent opinions to Domain and the SMH pages.
Just like the puff pieces about some 21 year old who owns 5 properties which ignore that they received it all from their family. Propaganda to make the older generations feel less guilty about robbing their children and grandchildren by buying more than what they needed and cashing out their properties at outrageous prices to the rich and overseas money launderers.
Hear, hear! Stop promoting the Ponzi!
In the intro she said it's getting harder for people to buy a house with rising interest rates, even though prices are falling. The next sentence she says 'but it's not all doom and gloom, with a pickup expected in the second half of this year'. So a rise is house prices in the second half is meant for be good for people trying to buy a house? Sounds like the ABC is trying to spruik the property market.
It IS harder. Prices might’ve dropped 10-12% but mortgage repayments have doubled. So it’s slightly easier to buy it, but your monthly commitment is double what it was 2 years ago.
So yes: it’s more unaffordable
They are it's blatant
I love that most economists think a correction is only about 2-3%. Houses need to be half the price they are today. Then you can call it a correction.
We bought our house for $470k 8 year's ago, recently valued at $900k.
It's ridiculous, my house is not much better condition now than it was 8 year's ago and most definitely not worth $900k.
@@Michelle_Emm usually the land is worth more than the house 🤔 Live in a good area?
@@dodohateswater We bought a standard size block of land not even 2 years ago in a suburb in the Hunter region for $230k. It is now worth almost $400K according to the Valuer General NSW. So you can't even say it is because you 'live in a good area'... Even properties a long way from city/town centres are rocketing up (likely because they are so cheap, people who are able with work are moving here).
Yeah my house went up 300k in 3 years. Its a seaside town and all houses are selling for holiday rentals. I know its not worth that much, its a joke and also i had to go in person to all 5 real estates and threaten them to stop sending me mail asking me to sell or ringing me. It was truly beyond a joke. One was the real estate that sold me the house not even two years earlier.
@@mouse1442000 i struck gold. Double house block. 2 storey 5 bedrooms with ocean views for 390k two and a half years ago. Divorce settlement. The guy sold low to screw his ex out of money hahaha.
The agent wants bidding to begin at $1.5m and minutes later he's down to $900K. He says not to be be concerned about what the market is doing. I'd be very concerned if I was the vendor, and mostly about the agent's knowledge of the market. Real estate agents, selling products and adding zero value to the transaction, and thinking they're gun salespeople during booms. It's been this way since ever.
"First home buyers have left the market" 🤣🤣🤣🤣🤣🤣🤣🤣No. First home buyers have been pushed out of the market.
Bernanke's interest rate suppression plus the Chnese gave the first time buyers a one two pucnh in the kisser. Locked out of the market forever.
What happened to serious journalism? This is just interviews of sales people telling you to buy.
ABC is becoming even more pathetic 🙄
Why does EVERY real estate report 'feature' Eliza Owen from CoreLogic saying the most obvious things again and again. Aren't there any other 'experts' out there on this issue?
You are bang on Zoe. Eliza Owen is an analyst. No expert on property by any means.
They’re scared of allowing anyone independent and realistic with real world facts and data to be in the media’s spotlight. The RE industry is an immoral and unethical entity.
Core logic supplies data to the realestate industry and have an interest in seeing the realestate industry thrive. It could be argued that they are no independent
Try Youe Tube Channel "Walk The World"
@@michaelrobinson6435 Martin North is the housing perm-bear. Always looking at things with a view of pessimism.
This was well detailed and put together. Using your recommendations, I have narrowed my choices down to Stocks, Real Estate and cryptocurrencies. Can't seem to find the most appropriate one out of the three. I would also want to know the least time intensive option because I'm usually very busy.
Why not at least two of them? Given the present economy, you should never forget to diversify. Do not put all your eggs in one basket. As one who has been into Real Estates for as long as I can remember, I made my first million earlier this year from stocks alone (got the assistance of a pro because I also have time constraints). I also experiment with a couple of other things. Hard to imagine that I had initially refused to try out new possibilities.
@@alexyoung3126 I have also been into stock market for sometime now and though I won't say I have lost a fortune, I have squandered quite a lot... You mentioned using Financial Advisor, if its not a problem. do you mind telling who you used one or recommending a good one? I could definitely use the help of one right now... I look forward to you
Funny enough, I can honestly relate. I don't know if I am permitted to go into details here, but mine is "EILEEN RUTH SPARKS" and you could look him up . I'm not so sure he takes on new people right now, i doubt she works with non residents, but you could try
@@lawerencemiller9720 I did check her out, I see why she's booked up, her creds/resumé is topnotch. I booked a consultation with her regardless.
This right here is the second time I am coming across this name in a week. Came to my workplace for a program and it was lit. found nothing funny bout her accent though
At 11:48 TIP OF THE DAY : "If you want to buy, you have to bid" ...Gee, thanks. Who would have thought?? 🤔
My protein powder went from $65 to $150…. And it’s still going… good luck everyone
At least you will be huge bro
hahahaha good luck
Finally a reporter and a channel that aren’t scared of the popping of Australia’s stupid property market may the universe bless us all and burst this stupid obsession with property …it’s too late for me though - like many skilled Aussies, I’m moving overseas this year for better pay and lower taxes - life’s too good to fritter away in Oz
It's starting to look like a phenomenally good option - I know Japan needs a work force, AND have a surplus of abandoned housing, particularly traditional, begging to be renovated, and boy oh boy doesn't 100 - 200k for a multiple bedroom home with yard, brought and renovated, sound both amazing and achievable. Who cares if some things are more expensive when houses with renos are a 5th (or 10th if I'm really smart) of the average cost of a house as is here. Either that or we look at way out bush, with generators, satellite internet, etc.
@@leonagahan9539 - you should certainly consider the option to move to Japan - I’m a big fan of many things Japanese!!
Gotta love when experts are asked a "Why" question, they answer more like politicians with glib responses about what is happening without the deep insight a true expert would have into why, perhaps because they simply don't know.
These real estate agents and brokers most often are minimally trained and have no idea why the shift in real estate exists. These entrepreneurs only exist to sell, using any means to make that "money" , regardless of the peril people are placed in. The gentleman claiming to put these punters at risk seems more like a con man that a real estate "agent".
sadly the house price correction will never happen as we all know, during the royal commission into the banks revealed that all houses in Australia are over valued by 60% too many people have heavily invested in these houses and apartments ( including the rich and powerful ) and if these people were to loose money from their properties, there would be hell to pay.
Non-discretionary spending UP into the TEENS (14-16%) Food Fuel Utilities etc does not bode well for RBA rates in 2023. To avoid the risk of spooking the housing market, they moved too slow on rates in 2022 and will need further increases in 2023 to avoid a full scale recession. Real Estate has no conscience, continually spruiking an irresponsible level of indebtedness in order to provide commissions.
The RBA may be focused on property prices. They still have the cash rate less than half the inflation rate.
Increasing interest rates aims to reduce inflation not prevent recession. It actually makes recession more likely by slowing the economy. Not saying that means they shouldn't do it but you seemed to suggest that they were Increasing interest rates to prevent recession when it is sort of the opposite.
What goes up mostly comes down, unless it reaches escape velocity in which case it may just stay in orbit.
I’m off to live in gran alacant in Spain before 50…Beautiful townhouses for 130 thousand euros, beautiful culture and handy for the rest of Europe. How Australia property is priced I’ll never understand. Not participating thanks!
Alacant, or Alicante ? Which part of Spain is this in? How are are you from a capital city, and what access to the health system do you have, as a non-citizen?
Has anyone thought about the idea, that an essential human need becoming more affordable, is actually a good thing?
Asked recently about a $541k house and land package only to have them say that was "last year's prices and it is now $650k", which is way over the First Home Owner Grant's limit. And even with the grant, the stamp duty is still double the grant anyway (because the First Home Owner Grant doesn't remove the stamp duty in South Australia like in other states).
Don't wait. The money you save will never beat the increase in price. With immigration open now, prices will go up. Rather buying than paying rent as rent is same as mortgage payment anyway
Long gone is the Australian dream of owning your own home. While it is possible it certainly isn't a joyful experience it is stressful and flows through to stress in living expenses.
Started off as a spruik for the real estate industry then went sad at the end, really sad. Sorry for the first home buyers, those trapped in negative equity even though there were plenty of warning signs such is the desire to get off renting, can't really blame them. But I really feel sorry for the renters, let's face it being in your forties and share housing, that's were in want to be in your forties!
They were really trying to spruik up a dead cat, lol.
so inventory is doen 30%, prices are still falling and people are finding it hard to meet the deposit levels? ummmm and we think magically things are going to be back to normal in 6 months? the agents just worked harder than they have ever done for a sale in trying to tell Australia that everything is going to be ok....
Prices are not falling.
Needs another 15 to 20% correction
My suburb alone has risen 30% percent, it’s just crazy. I’ve seen young families being out bid & the look on their faces is so sad.
Real Estate is overpriced in Australia all of the politicians own multiple properties. The politicians want prices to rise, they also want rents to rise because it benefits them personally.
not all but its something like 70%
@@Battleneter yeah right 😂😂
@@scorp2011hd No seriously around that figure, was reported on only a week or two ago.
@@Battleneter It is the major reason why they keep passing legislation that causes rents to rise. There is so much vacant land where they could easily build more affordable housing.
@@tameandhigginsareliars Then why aren’t we on the streets protesting for land release? Are we all that uneducated? Serious question.
US fed raising rates heading towards 6%, RBA won't be far behind otherwise AUD will crash, bond market collapse and cause more inflation
Bring it on! Self funded retirees with zero debt look forward to 6% term deposits. But why stop there? If rates rise far enough, the Government will have to prop up defaulting mortgagees. This will force them to stop spending $billions on wasteful ideological (woke) ideas (like waiving FBT for EV novated leases and subsidising renewables) or lose Australia's AAA credit rating.
How can interest rates come down when they haven't finished going up..This is likely to last year's because the inflation genie is out of the bottle and we have a different set of goal posts..also there's no more money printing and it's time to pay the Piper
Agree, money printing lies at the problem issue whisking all of us into inflation. My opinion: the push for digital currency will complicate and serve to alleviate the economy into a worse status.
I wouldn't bet on it - they will end up printing more money and suppressing rates if they need to. They aren't really tackling inflation ... just being seen to make a half hearted attempt to fullfill their mandate ... its about as far from a free market as you can get!
High house prices are bad for the economy. It drains more money into real estate and loans rather than the rest of the economy. As interest rates increase to normal levels (interest rates are still too low) property prices will fall and it’ll be better for the economy.
We cannot have higher interest rates and higher prices. Won’t work. I’m an owner and don’t like these silly high prices.
Finally, the ABC has produced content that goes head-to-head with nine's "A Current Affair".
Well done! Just the way I want my thirty cents a day spent. Added points for the free promotions thrown in.
Very informative documentary. Thanks
Something is "unaffordable" when its price is too high. Property prices are set by supply (low in Australia) and demand (high). Governments are intent on limiting supply while inflating demand.
The lnp is yes. Labor then has to deal with the situation caused by liberals, very delicately. Becuase they have to somehow increase supply, while also trying to avoid collapsing the price as that would have devistating consequences for the wider economy. Basicly this is a cat and mouse/cause and effect political game where by whenever the lnp are in government they make every possible stride to inflate prices and reduce supply as possible for their developer mates, and then when the public is outraged, labor has to come into government and deal with this while also being abused by the media and property owners for daring to raise rates to slow and cool things down, while also reducing prices which negatively impact people abusing negative gearing, and older people enjoying gigantic equities from from cheap property decades ago, to fund lifestyles that they are non property owners could only dream of.
@@blakejohnson3864 yeah exactly 👍
People need to start looking into regional areas ( like Newcastle or Wollongong ) , especially immigrants.
@@blakejohnson3864 Canada has much more land and much higher prices in 2/3 of our country by population.
@@nickyfurlano8531 currently suffering a downturn, with mortage holders having to sell their investment leveraged properties.
House prices falling - dramatic music comes on. But there is hope and future for Australian families, the prices will continue rising next year - happy music on!
Amazing how people don't see this bubble!
Very useful insight.
Why do you care If you make money on your house if it's where you live? All you want is for it not to drop in value too much.
With the current problem around the world today I think it's best everyone invest more in digital asset than Saving in banks, anyone you can manage don't live a life with no investment . Just my thoughts
Everybody is concerned about the market going down but refusing to take advantage of it. The best decision I ever made was to investing regardless of the market conditions. I made over 100k. USD with an capital of 5k.USD within 3 months. Trust me guys the market is still very much profitable
They won’t because inflation is too high . Materials to built homes is 140% higher than 2021
Some one is going to get the sack for leaving the comments on!
Nothing here we didn't already know. How about some solution based answers to home affordability and social housing. Most OECD countries manage this, why can't we.
We are amid a huge bubble, hopefully this will not burst. The unwanted consequence of too much debt and rising interest rates are increasing rents...very unfortunate situation for many...
Hopefully it does burst needs to crash badly to get back to where is should be less then half the price of where we are
These fake home prices need to have the biggest crash in history. Otherwise millions of people and your kids won’t ever have a home.
@@These-times-are-awesome if scumbags keep hoarding homes while regular people and families are robbed of their prosperity the US will likely become a much more dangerous place to be. Looks at the surging homeless population as a direct bi product of what’s going on.
People that wish for this fake market to continue deserve to suffer. And they will
Rents fall when prices fall. What did they teach you in school? Never in history have rents not fallen when home prices fell.
@@parkerbohnn it's true in most cases, but rents are also a function of supply and demand. Currently we have a double whammy of higher interest rates which put pressure on landlords through their mortgages and very high demand in every major city.
That music transition though 29:30 😂
Q3 has 216bn mortgage becoming variable rate loan. Real chaos has not even started yet. It will drop like we never experienced for the last decades. There is no asset that always goes up.
is Q3 Jul-Sep or Jan-Mar?
We’re in Q3
I meant Jul-Sep for CY Q3
Nice title implying that the market WILL find a bottom in 2023... smh
What kind of person buys a million dollar home with a 2 year fixed and a float after that ? seriously...
One who likes to boast and has real FOMO
Many dummy FOMOers
Someone on $300k pa
Most lenders won’t give you more than a 2year fixed term, as anything beyond that is too "uncertain " for the lenders too. But certainly borrowers should have factored in at least a 1.5% increase to their variable rate, once they come off their fixed term.
Borrowers should be saving that extra money they are keeping whilst on their fixed term, in order plough back into their loan once they get back on avariable rate...
@@paulsz6194
Yeah right, like that's ever going to happen! I might do that, and you might do that, but to the regular borrower any "savings" by reducing expenditure means they can buy other stuff - like retail goods, and boost that inflation figure even higher 😅
Just remember, the loaded questions that the reporter asks are just an invitation for these realestate spruikers to peddle their own interests as agents only get paid when a home sells, so they are always advising people to lower their expectations so that there is more chance for them to collect their commission.
I am an Australian born in Sydney Earlwood. The housing prices from fiscal and corruption of banks and Gold Visa to foreigners brought prices to a bubble. Negative tax incentives and banks loaning increase prices up to 300% in 2 decades with wages and purchasing power not rising. When housing prices drop we Aussies living abroad will return !
I wish more people knew the obvious.
They're describing a dumpster fire in terms of the pretty colors the flames are making. More rises without wage increase is criminal and negligent.
😅
Am in Toronto. Everything they said here about Oz applies 100% to Toronto, even the prices are the same.
The United States also falls into this debacle of inflated prices where many real estate agencies are capatalizing.
The international buyers are also the same
Lol blaming the RBA for interest rates going up 2 years before you were expecting them to go up. So your plan was to buy the most expensive thing you will ever buy in your life but sell in 2 years before interest rates were going to go up??? And don't tell me you were going to save to create a buffer in that timeframe, just stop lying...
2 years is a lot of time to win the lotto mate
@@sexyfacenation haha, the best financial strategy!
@@CR-pr4sd someone has to win it. Simple maths.
No one can realistically buy near the beach in central Sydney, this is so off the mark.
How about Parramatta, Ipswich or Coburg for your first house?
Literally every person that lives there proves your statement wrong mate.
@@johnowens5342 context, Cpt Obvious
Seriously!!!
13:17 - 13:51 Tips from an estate agent for sellers
13:52 - 14:13 Tips from an estate agent for buyers
Asking real estate agents for tips! what a journalist
11:20, real estate agent: “it is a good time to buy.”…..
always a good time to buy according to the agent's.
There part of the problem with there ridiculous commissions
I'm confused by the premise these journalists are working under.
Are they of the impression that property prices are SUPPOSED to rise and keep rising forever?
Where did this insane extremist idea come from, and why are they presenting it as though it's the default assumption people have? let alone a feature of a functional economy - because it really isn't. Quite the opposite in fact.
Real estate prices aren't supposed to rise ad infinitum any more than hydro electric prices are supposed to - something has gone wrong if that's the case.
There are plenty of affordable homes in Europe with modern transport, with top family/work practices and leisure infrastructure. Why buy a moulding dump, an uninsurable home or off the plan that is never finished and if is, is condemned due to shoddy building in Australia and spend your life paying it off??? Return home and make a better social impact on your life, most of you have family in Europe to return to. This report was superficial marketing-like and was promoted towards sellers rather than showing any empathy towards young Australian buyers. All show and no address of what is needed to change in Australian building and property laws. I guess this isn`t a serious issue in Australia.
Better start building them properly then and charge what they are really worth.
Instead of throwing up badly built dwellings at an overinflated price.But the realestate industry won’t like that will they? Apartments anybody?…
Economic investigator Frank G Melbourne Australia 🇦🇺 is still watching this very informative content cheers Frank
Dont buy now prices should go down
WILL go down!
Yet since 2017 houses have increased 100 percent , so whats a 10 percent drop over last 8 months
Drop drop drop prices more drops needed on housing and renting should go down...down...down
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What about the income of people who are buying these overprice houses are they able to pay these heavy mortgages with their income.
Capitalism has torn apart this nation - property should not be viewed as an investment but as a home, it should not be a financial commodity that can be leveraged. There should be caps on how many properties you can own (max 2) and you will see my generation finally able to have the same opportunities as past generations of Australians. Unfortunately, most people I meet are either too stupid or greedy to desire this.
Previous generation paid 3x their income for a home, my generation need to pay between 6-10x their income for a home (depending on the home and job you have - could even be higher). Australia is a very crony capitalist nation, in our ABS Census 2021 we had learend that 1 million out of 11 million dwellings (there are some variables, which may effect using the data in the context reliably - however, even if it were 500,000 unoccupied dwellings is still 5% of the market, which is significant) are unoccupied, basically developers and investors manipulating the market price and buying up all available lots to resell for more. I am totally sick of the fact we do not have a real progressive social democractic party that would actually fix this crisis. The boomers will never vote for the ALP, but the ALP will not fix the errors in the market and regulate it because they are worried they would lose a vote they never had. Australia, once a beautiful nation, destroyed by greed which has led to our climate change crisis and economic crisis. Good luck to all thinking people in Australia, we are definetly a minority (and dying breed).
I cannot imagine a bright future for Australia anymore. If you have been following politics for over a decade (and are a economic and social progressive), you know we are to dumb and ignorant to be proactive to a crisis. The time we can be reactive and deal with it will be too late, as it usually goes in Australia.
Have fun with your crony capitalism and investments you hoarding capitalist pigs! Apologies, to all other thinking Australians who recognise the increasing wealth inequality and wage slavery.
16:50 - "Only took out the mortgage because of promises from the RBA that rates wouldn't rise until 2024." Clearly had WAY too much trust in government and were unfamiliar with the RBA's terrible track record with forecasts. Also, 2024 is now less than a year away! Hardly the kind of longer-term forecast one should make a decision on when considering your most significant life purchase.
Doesn't take much to realise if rates are super low, they can really only go up.
Wether now or a few years , if that puts you over the edge it was always going to happen.
Mortgage stress sits at around 30% of households according to Martin north’s data and this is on the increase. Typical real estate industry economists with their partiality on the situation
real estate agents commenting on the housing market is contradicting! ask an economist for that matter!
i feel sorry for the twin sisters - hope they get through!
interesting video
I am I do not know confused. What happens in America happens in Canada. What happens in America happens in the UK. What happens in America happens in Australia. What happens in America happens in New Zealand. Is something missing? Are the Anglos living in one country with five different names?
Huh?
I dont understand. Why is it that housing affordability isnt getting better when house values go down?
Because a 10% house price decline does not help much if your interest bill triples this year. In the early years of a mortgage, interest accounts for almost all of your "repayments". Almost no-one's wages are rising by enough after tax to deal readily with that reality.
What about tweed byron area
Byron Bay real estate is very expensive
The RBA needs to get rates above the 15% inflation rate to stop inflation...if not, we turn into hyperinflation. Check what happened in the 70s and 80s. So either way, the RBA is screwed
hey Boomer, you do realised that the current inflation is caused mostly by supply-side issues, raising the interest rate will only lower demand so it won't do much as you can tell from the recent inflation data.
@@MS-vl3im and we can presume that you trust the governments inflation data. Haha
@@packageism We can presume that you don't have a better source. Haha
What is really needed is more housing to be build, immediately. For every immigrant we need to build a minimum of two housing stock. And the red/green tape cost must be eliminated.
We need to get immigration back to the 50,000 per year that it was during the Whitlam government. The average permanent intake in the second half of the last century was 70,000 per year.
@@chriswatson1698 we need a new government system. The last three year was THE opportunity to catch up on housing stock but we were told lies about labour and products shortages. Utter nonsense. Shipping was backed up from here to China, but we refused to process those because, which now has clearly been demonstrated, an insignificant pesky virus! One that only affected a few percent of the population and only had a serious impact on a even smaller percentage of those that were elderly and/or had serious precondition ailment, yet we shut the nation, the world down for this!
Lack of building materials and quality tradesmen is a major issue.
@@robcig it is artificially created.
Even prices to RENOVATE is out of reach! We shouldn't have to borrow money to buy a house. If our wages kept up with CPI and our saving accounts interest rates go up. The bubble has to burst at some point!
I have seen this before.
They didn't mention the demand produced by people who have had their rents increased and therefore go looking for a new rental. This adds to demand but their current rental doesn't go on the market until after the move so that supply is not forth coming. This would push up cheaper rents which is in effect increase the average rent in any area. I would like to know how rents have moved across price levels. The more people that are forced to move to cheaper rents the more rental volume will become available at more expensive levels, and those prices will come down. When that happens people will see more value at a slightly higher price point and move up which will increase availablity at lower rates. Expect to see this early next year as most leases are for 12 months.
Ah yes, it's the renter's fault rent is high, because their landlord increased rent, so they increase demand which forces landlords to increase rent!
The mental gymnastics for that justification to be rational in your mind is phenomenal 😂😂😂😂
You own a rental, hey?
@@leonagahan9539 Firstly I rent and I am not blaming anyone, it is basic supply/demand economics.
If anyone is to blame, it is the banks, RBA and government for creating an environment for skyrockerting prices with low interest rates which are not sustainable.
As far as being rational, maybe you could learn a bit about a concept before criticising.
Waiting for Aug - DEC 2023
is that when it skyrockets again?
What possible argument is there to say that extremely high cost of shelter is a GOOD thing? Falling property prices is one of the best things Australia has ever seen.
Prices go up and down, always have.
Housing correction can last 3 to 7 years this time.
If true it is going to be a great time for me. Lots of opportunities for those that are ready.
If this crisis needs 5-10 years to resolve, then the time to start was 5-10 years ago. Who is responsible for failing to do so, and how are we going to extract the damages from them to repay all of the renters and mortgage-holders the wealth that has been already stolen and continues to be stolen whilst the crisis continues?
Results are due now and the idiots that got us into this mess should be footing the bill in the interim, not working Australians.
Buy in with parents and subdivide to have your own entrance and private living area. Otherwise, look at tiny house estates where people live stress-free!!!
And 40+ Km’s outside the capital city.
Nope
australia's real estate mkt is at risk of being hit by the surge in interest rate, cause it's one of the mkt largely exposed to variable rates. the amt of mortgage that faces being struck by the rising rate is way bigger than nz, canada and uk, which are as well exposed to variable rates but less than australia, as opposed to u.s whose mkt is mainly depending on fixed rates. if a hard crashing on global economy comes into reality, 20%-30% drop in value occurred last year might be a joke to what will be happening this year. don't be fooled by central banks lowering the rates, cause it's a signal for looming recession for real as tech bubble back in `01 and mortgage bubble back in `08.
it will fall and go up in long term. Singapore prices are going up even with interest rates. Lots of rich chinese and foreigners. A few cases they buy whole apartment blocks at 200 mil each. Dont expect it to go down half not possible. Australia is in a good position and country that foreigners want to move to.
Looks like a great opportunity for those that are ready.
Well they rising by 20% pa in yass valley and to build a basic home is $500,000 for land and $890,000 for house so $1,390,000. Zero correction here
*yet
So long as the population grows faster than housing it will NEVER correct.
They're counting on it.
House price cant recover.. for a while... Unless interest rate is like less then 2 percent like before. It's now 4 to 6 percent...
Real Estate agents expect to make two commissions on each property they sell. The original sale and again when the buyer is forced to sell due to rising interest rates. Then the cycle starts again with a new buyer.
cant wait to pounce ;)
It's astounding how people can easily borrow $1mio mortgage like nothing
Right? We’re not allowed to do that in the US after the housing crisis in 2008. No bank would carry that loan now, they aren’t allowed.
basically people panic bought during covid now everything starting to crash....
Who cares how much the market falls or how low the interest rates go if it's all still too expensive? I'm almost seventy years old and I'm cashing in my modest super (thankyou Paul Keating and compulsory super) to owner build a 9.6m x7.2m colour bond roof, hardyplank exterior on a cement slab house for one (plus garage) on a vacant block that I luckly snipped for $135k 100kms from Melb. After a couple of financial setbacks it took me years to face up to being left behind and that being born here and raising a family here counted for naught. If you wish to do a public service for those "left behind" then along with the reported medium price also report the minimum price and the yearly income needed to service that mortage. Yes a bucket of ice but it may shake some out of their left-behind-numbness and have them re-invent their future elsewhere before their only option is a caravan park. As for the city winners; they'll just have to mow their own lawns and pour their own coffee. T
House prices have not dropped in Victoria. In some areas like Gippsland they have gone up. Interest rate rises and inflation
Have had no consequence at all yet.
😂😂😂 😂
This is real estate industry marketing ... goes up 40 % no problem isn't it fantastic! Goes down 4 % and it's the end of the world ! Funny thing is it only went up because of money printing and zero interest rates ... the result was inflation and higher interest rates !