We’re through the worst of the property downturn

Are we through the worst of the property downturn?

Well…Corelogic says the worst of the housing market conditions are behind us

Price declines are bottoming out in the Sydney and Melbourne property markets, though they’ve now spread to parts of Brisbane and most of the other capital cities, and almost all of the regions too.

A1

And rental yields have recovered to a more sensible level.

A2

The credit cycle having bottomed makes sense with what stock markets are telling us, with a raft of strong leads from consumer discretionary stocks and a solid recovery for the major banks.

Property Downturn2It rather depends how you define ‘worst’, though, I guess, as transaction levels have been blown to smithereens.

UBS reported that housing turnover rate has collapsed to the lowest level on record at just 3 per cent.

So although price declines might be bottoming out, this bodes horribly for renovations and consumption.

Banks are quietly pleading for more leeway to lend.

A3

Interest rate buffers and floors are indeed supposed to be updated to reflect the interest rate cycle and interest rate forecasts…though when the guidance was drafted financial markets were expecting the next move in interest rates to be up – which is no longer the case.

This months CoreLogic’s market report can be found here: While Dwelling values fall – the rate of decline continues to ease

wealth-retreat_hor
icon-podcast-large

Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.

icon-email-large

Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Pete Wargent

About

is a Chartered Accountant, Chartered Secretary and has a Financial Planning Diploma. Using a long term approach to building businesses, investing in equities, & owning a portfolio he achieved financial independence at the age of 33. Visit his blog


'We’re through the worst of the property downturn' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*


facebook
twitter
google
0
linkedin
0
email