Property news roundup 25 Feb 19: how bad can it be?
In this week’s edition of the property news roundup, we ask the question, how bad can it be?
Whilst the intensity of this downturn cannot be understated, it helps to deconstruct the headlines being read.
This week, from news.com.au: ‘Desirable’ property’s dramatic 13 per cent price plunge proof of downturn
The article cites one property that has dropped by $200,000, and 2 other properties that dropped around $20,000 - $40,000. The property that dropped the most was in North Ryde, an area that has been hit the hardest according to the article. But it is very possible that there are other reasons why the North Ryde property sold so low - for all we know, it could have been a fire sale. It’s very telling that more information was not given. Some areas in Sydney have actually seen growth. Also from the article:
“The Sydney market is falling overall but it is definitely multi-speed at a suburb level.”
Another interesting piece from news.com.au: Banks need to open purses to help turn the property market around, says Triguboff. A highlight from the article:
“There is something seriously wrong with the system when borrowers with above average household incomes can’t borrow funds to buy a reasonably priced home or investment property,” he said. (Daniel Walsh of investment buyer’s agency Your Property Your Wealth)”
A lot of experts will readily admit that this downturn all boils down to the credit crunch. How long will it be before banks realise that the current measures are hurting the market? Surely there are better ways managing credit for consumers.
Also this week, there are good news stories from the Gold Coast and Adelaide.
Have a great week everyone.