Australian Property Monitors (APM) says the the value of houses and units will fall by 10 per cent across all major capital cities over the next year.
The organisation says house values in the June quarter dropped to their lowest level since 2004, as rapidly rising interest rates gripped the market. read more
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Thank you to property owners and aging baby boomers pushing the value of all property beyond all reasonable valuations..
Lets not apportion blame, except to those were buying the homes at ridiculous values. 7 times average income, please!
Actually Jeff, I go to quite a lot of auctions around where I live and my observations are that it is the Generation Xers who are currently pushing up the property values with their reckless bidding and over the top renovations to exisiting comfortable houses.
Most baby boomers brought their houses 20 or more years ago and have done little to fuel this property boom other than living in their homes and bringing up their kids. If they want to sell their family home and move somewhere else to retire, just like their parents did as generation before, this doesn’t make them the personification of evil.
Sure there are people who have scooped up properties using cheap money and hoping that tenents will pay the mortgage while they get the capital gain, and they are the ones that will now be suffering.
A “correction” housing prices will be a good thing.
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