housing market in oz

[tony and sheena]

Hi
I've read a few posts on here recently claiming that house prices are dropping, however when I'm looking on property sites, they appear to be rising.
What's been said in the news there about the 'global' credit crunch?
Are the experts predicting a crash, or are prices booming due to the amount of migrants arriving and the housing demand?

Thanks
Sheena

[jogrant3232]

Hi Sheena,
It does say in the Auzzie Papers that house prices are dropping but again on real estates they seem to be the same. The thing is they know how many Brits are trying to get to Australia and for some barmy reason the Australians think we are millionaires?????

[cantwait]

Hi
What ever the asking price for property is in Australia doesn't necessarily reflect what they sell for. Similar to the UK, there are many that don't get the offers they are looking for and many properties at auction that don't reach the reserve.

[Quoll]

I think there are some areas that are holding their prices and some areas which are not - combined with the selling price often being accepted at well below the asking price. One house that I have been following has been dropped 30% in price (mind you it is out in the bush and probably no one in their right mind is going to go there) whereas there have been others in my suburb that have gone almost as soon as they have been posted with prices on a par with a slight increase from other recent postings.

[BullcreekBob]

Originally Posted by tony and sheena

Hi
I've read a few posts on here recently claiming that house prices are dropping, however when I'm looking on property sites, they appear to be rising.

Many people have their own reasons for wanting (to believe) prices are dropping. They also tend to shout loudest saying "Doom and gloom approach.." But I think you're right, when looking on property sites, prices do indeed appear to be rising. Figures published by the Government, the banks and the real estate companies all agree that average prices are increasing. In some areas the increases are quite substantial, in other areas the increases are more modest, and I don't doubt there are some houses that have been reduced.

But, an "average house" in an "average place" put on the market at a "realistic price" is likely to cost you more now than a year ago and will most likely cost you even more in a years time.

Our house is worth about $700K. If I put it on the market for $1,000,000 to see what happens and after three months I reduce the asking price to $750,000; it doesn't mean there's been a massive 25% price crash - at best it means there's not as many idiots around.

[jimmyjo]

I agree house prices are rising again, you only have to see the limited amount of rentals to know that many can not afford to buy, also due to higher interest rates as well