Property News this week 10 Dec 2018
Every week when we pen the round up, it is literally a case of - who has the worst headlines this week? However, to see a piece from the ABC’s 7:30 report open with the below was quite worrying.
The tide is turning on Australia’s $7.6-trillion property market.
Despite the negative tone, it’s a great interactive article, so check it out and you can also do suburb level checks for how prices have dropped.
Of note is this quote by the UBS chief economist, remembering that is is not an economic driven downturn.
“It would take a major reversal of policy decisions by the Government and the regulators to try to attempt to re-inflate the housing market and at the moment that’s not the case.”
The experts are still referring to this current situation as a ‘soft fall’.
In its latest assessment of Australia, the Organisation for Economic Co-operation and Development says the housing market poses a risk to the nation's economic growth going forward.
That comes amid elevated house prices and related household debt, the Paris-based group said in a report released on Monday.
Next - the biggest thing that happened over the weekend, the RBA has announced that measures may be put in place to minimise the effects should we fall into a financial crisis, including rate cuts and quantitative easing.
There was also an article on negative gearing this week, from one of our favourite blogs, on what could happen if negative gearing is implemented, and it is a very analytical and well thought out piece by a hugely experienced property investor.
On to positive news, there was a string of sales in Perth, leading to some optimism, and Sydney’s clearance rate sat at 48pc. Whilst this is on the lower side, it is not anywhere near the bottom and was the same as last weeks’. Meanwhile, does a glimmer of hope in helping the market lie amongst ‘downsizers’? Realestate.com.au thinks so, stating they are ‘cashed up and ready to go’
Have a great week everyone!