New property boom looks imminent with a range of indicators pointing to price growth

Experts are saying this could be our biggest boom yet.

New property boom looks imminent with a range of indicators pointing to price growth

Since then, Ramon Mitchell, director of Gault & Co Property Advisory, said competition had strengthened among buyers, with bigger offers made and sales completed faster.

“There’s been increased traffic through open house inspections and there seems to have been much higher conversion of these to registered bidders on auction days,” Mr Mitchell said.

“You can see how this has played out in consistent improvement in auction clearance rates – including sales prior to auction.

“There’s no doubt this is having an effect on value – they’re increasing across most of the markets we monitor – particularly in the capital cities.”

 

Not going to happen.

lending criteria and standards won’t allow a big boom

anyone who says that doesn’t understand the lending environment or has a vested interest in selling something.

100% people looking to purchase but with no extra borrowing capacity than before

 

Two words : wage growth.

Get some of these two words into the housing boom formula and Kapow! Qunckkk! Thawack! it'll be on again!

 

Short spurt, people buying to get in to their new home before Christmas

 

I think people are going to very disappointed if they are hoping for any decent wage growth in the near future.
The current labour market simply doesnt allow for workers to demand a pay rise and companies are more concerned about rewarding shareholders through dividends and buybacks.
Wage growth is just collateral damage.as workers are unable to take any real action..
Woolworths is the latest company caught out that seamed to struggle to pay its managers the correct rate..

 

You guys have forgotten that interest rates have halved in just five months. This has significantly increased serviceability hence why house prices are so strong now and getting stronger each month.

Interest rates are expected to be ZERO middle of next year, and then start going negative in 2021. Lots of room for continued growth.The RBA will ensure this.

 

That would be ideal, but the uptick won't be fueled by incomes. It will be fueled by population growth and credit growth.

My guess is therefore that the mini boom will be driven by relatively few buyer's/investors, and a general rise in incomes won't matter.

I would also say that "average" wages are often not as meaningful in countries with high levels of immigration. There are many people for whom wages are increasing, but the averages blend lower due to high levels of immigration. Not a comment on immigration, just on how averages work.

 

You mean like replicate what happened in W.A when house prices were elevated and everyone assumed you had a high paid mining job or worked in the big construction jobs in the north of the state.
Then one day population growth stops and the wheels start to fall off.
You end up with all these people stuck with elevated house prices and trying to sell it to people only earning 50-60k a year.

 

It's a correction of the over- correction. That is all.

 

I believe that lack of wage growth has more to do with rental values not increasing. The recent price growth is due to lack of stock as vendors waited to see how the market went. House values are supply and demand.

 

True, but there would need to be a cessation of population growth for that to happen. I can't see that happening.

 

But - the banks passed on barely half of that. So, if you're really lucky, you may have received at 0.5% interest rate cut.

On a $700,000 loan, that equates to $67/wk .. don't think it's going to make anyone rush out and buy. Especially since basics like electricity, food and water have all gone up

Think you'll find, those who are buying were wanting to buy during the initial boom but missed out ... a pendulum stabilising mini boom at best

 

Banks serviceability rates haven't halved though, so there hasn't been a significant increase in serviceability, some yes, significant no.

 

Dont see a boom this fast. That said, the recovery is also a lot faster than expected. Looking longer term though cant see how house prices can fall if population continues to grow.

 

https://www.smh.com.au/business/com...rangaroo-apartment-tower-20191029-p535fm.html

hmm what housing crisis haha? wow.. $3m... for a 1BR!

 

Maybe landlords should all hike rents $50 a week, then we will see some wage growth!

 

Say what? I'm abit confused mate...

 

You can't squeeze blood from a stone.

People can only afford to pay so much in rent. If wages don't increase they can't pay more for rent and still live

 

Sorry I mis-read it! As interest rates drop, less supply the east coast will be in rental crisis at current trends