Mum and dad investors have Australia teetering on the edge of a housing crash, report warns

Discussion in 'Property Market Economics' started by djyella, 2nd Dec, 2017.

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  1. Perthguy

    Perthguy Well-Known Member

    Joined:
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    Perth
    I agree. Australians have taken on a lot of debt but it has not boosted the economy, just select asset prices. The economy overall feels like it has been correcting for the past 10 years. This is what I am interested in and is why I asked the question. Do economies usually go:

    - boom/bust; or
    - boom, 10 year correction, bust

    I would have thought the latter would not be common.

    Historically, the Sydney boom that ended in 2003/2004 was bigger. From 2004 to 2006 the Sydney market dropped back 9%. Considering the previous gains that is not very significant. What is more significant is the lack of price growth from 2004 to 2012. That is many years without much growth in real terms. This is on the cards again.

    Data sourced from: https://www.ceda.com.au/CEDA/media/General/Publication/PDFs/HousingAustraliaFinal_Flipsnack.pdf (page 37)
     

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