Tsunami has hit? Syd and Melb -1.1%

Every expert and his/her dog is barking this. Altair has sold off, May 17 indicates -1.1% and -1.8% for Sydney and Melbourne respectively, happy days for cashed up people?

 

I'm certainly noticing a somewhat alarming rise in negativity in the media today.

 

This is the end… until RBA cut rates a couple times this year and another 16% growth YoY is assured.

 

I got called by two Sydney agents this week asking if I'm looking to buy at present. I haven't gone to any open homes for about six months so I think they are starting to get desperate

 

Going by what happened up here......it takes a while to know for sure. Like a year or so. Still early days...

 

well, there is more to Altair's story ...

Altair boss Philip Parker linked to dispute over mother's shares

 

Interesting, never been through a crash but from all reports it's not what its cracked up to be. An Irish colleague (yes yes, I know very different situation and all) says it was a slow burn rather than kamazke style panic.

 

"The correction typically lasts around 18 to 24 months and we see values fall somewhere between 2 and 10 per cent."
Sydney is poised to have a the biggest correction due to the biggest gains.

Sydney prices has went up by 70% in the past five years, a 10% drop in two years time as predicted by Corelogic is not that bad. Not the end of the world and can actually be a good thing.

Also, in Victoria, new stamp duty changes for FHBs most probably will push prices up for a bit longer so we go back to the old saying, markets within markets. Some might fall, some might stall and some might pick up again.
The only worry to my mind is the economy and on that front the government can stimulate and the RBA can cut rates so again, we are still in a very good position compared to other countries.
Check the second link from the Business yesterday night...

Correction not crash predicts property analyst as house prices fall

 

Maybe its just winter... less colourful gardens, colder weather, all the skinny buyers opting to stay home than braze the cold.

 

OMG!!! 1.1% decrease!! Call Emergency!

Really L0L? that just monthly market fluctuations

 

This is just statistical noise, let's see how things are looking in 3-6 months time before calling any sort of trend

 

You mean you can't run a linear regression off one data point?

 

..... and shame this market been booming since 2013 and most have doubled their money seriously folks put it in perspective

 

please..keep it simple for the mathematically challenged among us.....

 

It is in perspective. We made 70+% gains, how dare they take away my 1.1%!!

Blasphemy!

 

Actually we have now two data points - April and May. Look at this:
Back Series | CoreLogic

 

Well that confirms it, the world is definitely ending

 

It's a personality test: glass half full/glass half empty. If your IP increases in value 70% then falls in value 10% from peak, do you:

a) celebrate the 60% increase

b) whinge about the 10% decrease from peak

c) ignore the hype and get on with the business of property investing.

(if you want you can choose a and c for example )

 

The answer is obvious, I choose "c) ignore the hype and get on with the business of property investing", but I may have to cut back on the Avo on Rye to gain back my 10% lost..common im Jewish..what you expect

 

Except its not a net 60% gain after a 10% drop, because the 10% is coming from a larger amount.

Start with a $1m property. A 70% gain brings it to $1,7m.

10% from $1,7m is $170,000, deduct it and you get $1,53m which is now a 53% gain.

It actually only takes a 41% drop from the peak to reverse a 70% gain.