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RE: The Coming Australian Housing Crisis: A Couple Of Updates
I am currently renting a property and it is up for sale. It is struggling to sell at the price it is listed for and it's listing price is the same price that the owner bought it for back 6-7 years ago.
Wow @apsistrading, that there is pain. When you factor in the holdings costs over that time: rates, insurance, maintenance and mortgage interest that places the owners already underwater and they haven't even started to negotiate yet!
@nolnocluap There was an open home for it over the weekend with zero interest. Nobody walked through for the entire hour we had the open home. It is on a street where there are blocks of 2 bed 2 bath apartments going up left right and centre.
I've seen those streets before and even used to live on one. Supply side saturation. Why buy now when newer offerings will be completed just around the corner? This will tend to push prices lower in my opinion.
Not to mention the bond market being in a bubble and at the end of a 30-something year cycle. Home loan interest rates approximately 4% below the average standard variable home loan rate for the last 50 years in Australia. Rising interest rates in the overseas wholesale funding markets that the Aussie banks source capital from.
Things are going to get interesting...