Could it get any worse

Its simple if there was not an oversupply you would not see property markets falling, and its not just apartments, its impacting on house prices and rents
If you disagree, auction clearance rates are quite sobering

How are those land and house packages going? My guess....south. ..... and we need more houses?????

 

OK, if you say so...... but we have plenty of affordable housing in Perth, but no one is buying

Give it 12 months...... there will be more affordable housing everywhere

 

P

Agree, but its all about cycles, we are currently in the start of a downturn.

We dont need government to place a nail in the coffin, when APRA is doing a good job

 

I never view Aussie as just 1 market or cycle. There are definetly opportunities now and more so to come, even if labor gets in. But no disagreement from me re keep labor out of gov as long as possible .

 

Sure - but Im not arguing that point. Im arguing what you said the reason was. You said markets are falling because of oversupply . My response was that it isnt the reason for declines

One could argue prices rose previously because of an oversupply of almost unregulated credit , and they are now correcting to a more reasonable point because credit is being regulated

 

Mortgage delinquencies mount as more borrowers find their home is worth less than their loan

"In 2012 the mining boom was in overdrive in the west.The state economy was growing at almost 14 per cent year-on-year. The unemployment rate moved under 4 per cent and the mortgage delinquency rate, on ANZ's books at least, was under 0.5 per cent.Stagger forward to 2018 and WA's economy barely grew — state domestic product was up just 0.3 per cent, unemployment had jumped to more than 6 per cent and delinquencies had risen five-fold".

Apart from unemployment increasing there would have also been a lot of people taking pay cuts after going from earning 120K+ in the mines to 60k-80k working in trades and the services sectors of the economy. The WA State Government even had a complete hiring freeze. For those fortunate enough to keep their existing jobs wage growth has been low. People simply don’t have the disposable income and / or are unwilling to commit more of their pay packets to servicing a mortgage. Population growth also slowed after going from boom to bust, which ordinarily would have absorbed the added supply.

 

Semantics.......outcome same.....Yes caused by credit squeeze, more stock coming to market. If you cant source finance you cant buy.... volume increases

 

I'm not a fan of Shorten, but I thought he was pretty impressive in that interview.

Out of curiosity how do you think taking action on climate change and removing tax credits for people who don't pay tax will affect the ability of people to build wealth?

 

Property boom in Perth started around 2001 and peaked in late 2007. Mother of all booms

Another from 2013-14. Mini boom, impetus was FHB grant - favourable changes

 

Tongue in cheek

 

It's just been such a long climb up, that maybe many have forgotten what a downturn looks like ... the doom and gloomers have been forecasting this bust for many years now.

Those of us who have been around a while, know it's simply part of the cycle

 

And stagnant wage growth (under LNP) has made people more wary.

It's not just housing - every consumer industry is experiencing a downturn as people simply aren't spending

 

I don't - I think it's simply fear of the unknown

 

No, not really, some markets Perth been in decline or flat since late 2007......I understand the pain

 

Morsl of the story.....Just dont try to make money in a downturn, or worse down turn and labor gets in

 

Don't think the market takes much notice of who's in government - those with ability work with whatever cards are dealt

 

I hope Brissy eventually booms, its been a long time