July 25 links: Auction surge!

Comments

  1. Torchwood1979

    Hmmm… I thought the signs of life returning to the RE market were limited to Queenslanders trying to beat the stamp duty increase. Maybe the Oz RE market is bottoming out after all.

    • Gittins makes this point too – that those wishing for lower rates to give a boost to lending better understand that rates would only be lowered if the economy was tanking…which wouldnt be good for lending growth.

      The Bulls cant win from here…rates flat or rising will continue to sink the housing market. If rates fall again due to the ‘Nancy Boys’ at the RBA, they would be doing this to stop the carnage from a housing crash…not to start a new bubble forming.

      Bull trap indeed!

  2. David Collyer

    A tiny uptick in the auction rate – one of the most gamed statistics in our data-corrupted RE market – is no cause for relief, let alone celebration by property bulls.
    “By any objective economic measure – house price to rent, household debt to assets, median house price to income multiple, mortgage debt to GDP, household debt to disposable income – residential property is ‘severely overvalued’.”
    http://www.prosper.org.au/2011/07/19/bubbling-over-the-end-of-australias-2-trillion-housing-party/

  3. If you read the “speculators hold city to ransom” story take some time to read the comments. I think some of the sentiment in there is very enlightening.

    Ignoring the trolls there are a number of posters along the lines of “it’s not worth the hassle of having a scummy tenant in there” “ they don’t treat the properties well” etc…

    For me that speaks volumes about the nature of low rental yields. If the investor is getting such a poor yield then it’s in their best interest to leave the asset locked up and protect the asset that they have. That to me seems very rational.

    Other than that, the majority of posters condemned the article and there wasn’t as much from the housing bear camp as normal.

    Ian