Breaking: House prices growing at the fastest pace in 10 years

Emergency low interest rates have sent house prices surging.

House prices in parts of Australia growing at fastest rate in 10 years

CoreLogic's closely watched home value index showed house prices in Sydney jumped by 1.8 per cent last month while in Melbourne they bounced by 2.4 per cent.

Melbourne's house values have increased by 5.7 per cent over the past 3 months or by almost 23 per cent at an annualised rate.

Sydney is not far behind, with prices there up 5.3 per cent through the quarter or 21.1 per cent at an annualised rate.

 

Nah, I am going to wait until I am really sure the downturn has ended .

 

Dont know how to read this market.

 

Melbourne has been always unpredictable in term of price rising. I have seen over the years areas where prices are falling @ more than 5 percent.

 

........... And the rest of the country?

 

CoreLogic Home Property Value Index Monthly Indices - Sydney, Melbourne, Brisbane, Perth, Adelaide, Darwin, Canberra & Hobart

Although that is cities and not "the rest of the country". Everywhere but Perth is up for the month.

 

It looks pretty hot on the ground here in my area of the Gold Coast . Miami/Mermaid Waters all signs have sold on them at moment and a couple of sales I have been surprised by the price.

 

If you think the market is "hot" now, it will be interesting to see next year when the official cash rate is zero! We could be easily witnessing 30%+ pa growth.

 

That's why my philosophy has always been: buy when you see value for your risk profile.

Forget trying to read/predict/perfectly time etc markets as though you have a crystal ball on your shoulder. It's a waste of time and once you miss a large movement, it's pretty much over. Forget worrying about how every man, woman and their dog are investing or not investing.

When you see value for your risk profile, it's a buy for me.

 

Isn't APRA supposed to have killed the markets??

Many people kept asking what is going to drive prices?! what is going to drive prices?!

This is a good lesson. Price growth is driven by emotions. That's it. If ppl feel they missed out or whatever, the money will magically appear and they'll buy. It's all market sentiment/psychology imho.

Funny stuff I tell ya.

 

I thought it was obvious. Emergency low interest rates.

 

Low interest rates is a nice fact but it's not what causes people to rush out and buy property. Current low interest rates are available all around Australia and yet many places and not growing fast. It's because there's no fear created of missing out in those places. Yet.

Fear of missing out. Supply and demand. It's all about the emotions. It's exactly the same way with the stock market but only a lot more heightened.

That's how I analyse it anyway.

 

World economy up the ****, Australian economy up the ****, RBA dumps interest rates = lets go out and splurge on overpriced property....

This will end well..

 

Yeah right. House prices in a few select locations are growing at the fastest pace in ten years. The rest of the country is NOT growing at 10 or 20%. Get real.

 

House prices in "parts of Australia" growing at fastest rate in 10 years

You sound angry . Dont stress.. Brisbane's time is coming too!

 

Perth has the same interest rates and is still declining. It's not interest rates.

 

prices to rise 30% (Joye)

House prices to increase 30% (and the return of sub-prime lenders)

 

Exciting times. He must have read my post on Friday:

 

Happy Happy Joye Joye!

 

Angry? Probably. But definitely cynical. Just so sick of the "Sydney + Melbourne = Australia" thing. Even the Labor Party seems to have forgotten about the other half of the population who do not live in Sydney and Melbourne.