Rather than my regular written SQM Research property market update , please watch the video below where I discuss the current state of the Australian property market for Yahoo.
Peter Switzer interviews Australia’s scariest economist Steve Keen joins TV to talk about his views on housing bubble concerns, debt and much more.
Now I don’t have a degree in economics so I’m not sure what right I have to disagree with Professor Keen, but while I can’t disagree with some of the facts he discusses, I find it hard to agree with many of his conclusions. In fact most economist s don’t agree with him either.
Watch the video and leave your comments:
It’s no longer news that the RBA held interest rates steady, but what is interesting is that they gave mixed signals for what’s ahead.
Open the newspapers, turn on the radio, look at your inbox and you can’t help hear the words property bubble.
While some are predicting what has become a bit of a tradition – an interest rate cut on Melbourne Cup Day, the first Tuesday of November - the chances of another interest rate cut this year are getting slimmer.
Recently two of Australia’s biggest banks altered their forecasts for the next cut… [Read more...]
Over the previous month we have seen the combined capital cities index move to a new record high, pushed along by strong capital gains across the Sydney and Melbourne housing market where values were up by 2.5% and 2.4% over the month of September.
Such a strong rate of appreciation has reignited debate about the sustainability of Australian home values, however it is important to point out that that capital gains have been very much concentrated within Sydney and Melbourne. [Read more...]
Some fascinating studies have been carried out into the human tendency towards confirmation bias.
We tend to gather information selectively in order to support our preconceived notions and tend to frame our questions accordingly.
Housing bubble? Give me a break.
I forewarned a few weeks back, that we might see an increasing detachment from reality as this residential market recovery takes hold.
I was thinking it would start in earnest sometime next year. But it looks like I was wrong. The loopers are already at it & in force. Lord help us when we actually see some real heat in the overall housing market. [Read more...]
When we talk about the escalation in home values over the recent past a major factor that is often overlooked is that most of the increase has been driven by the escalation in vacant land costs.
Based on the quarterly median selling prices of land across the combined capital cities, the price of land at June 2013 was $232,000.
For anyone looking to build a home they have an initial outlay of $232,000 before all of the costs associated with construction, add in stamp duties and other expenses and it is no wonder that new homes are often seen as quite unaffordable. [Read more...]