Episode 25

The number of homes being put up for auction across Australia has plummeted as falling property prices and fewer cashed-up buyers shake the confidence of owners looking for the right time to sell

The decline of auction rates and confidence in the market

  1. CoreLogic – properties taken to auction last weekend was 1,909 – down from the previous year – 2,270.
  2. The number of homes being taken to market is down on average by 20 percent.
  3. Sydney, the preliminary clearance rate was 59.1 percent, indicating a classic “buyer’s market”. Property values plummeted by 5.6 percent to record over the past 12 months to a median house price of $863,769.
  4. Melbourne, the preliminary clearance rate was just 58.6 percent. House values have fallen 1.6 percent over the last 12 months to record a median house price of $709,568

Capital city median home values:

City: Annual change in price: Median value: Annual housing return**:
Sydney – 5.4 percent $863,769 – 2.5 percent
Melbourne – 0.5 percent $709,568 + 2.4 percent
Brisbane + 1.2 percent $494,634 + 4.8 percent
Adelaide + 0.7 percent $438,163 + 4.9 percent
Perth – 2.3 percent $457,274 + 1.6 percent
Hobart + 11.5 percent $435,833 + 17.1 percent
Darwin – 6.2 percent $439,596 – 0.8 percent
Canberra + 2.4 percent $590,229 + 7.0 percent
National – 1.6 percent $554,263 + 1.9 percent

*CoreLogic July Home Value Index, includes both apartments and houses

The Analysis
Coming down from the top – Last year was at the peak of the market

  1. Long term normal averages
  2. Why is this happening?
    • Consumer confidence
    • Prices are too high


Property Clock Link: https://www.htw.com.au/month-in-review/

Things move in Cycles
Residential property market goes in cycles

  • Supply and demand
  • Supply – Properties being built
  • Demand – Interest rates, credit availability, population increases
    • Demand may be dropping as auction set prices are too high
    • People may just not want to pay what people are asking for in the price
    • Especially Sydney and Melbourne


Don’t panic

  • Be aware, but don’t be alarmed
  • News stories are crafted just to sell
  • A few weeks is not a trend – Takes some time and may have just been a rainy day


Won’t see a massive drop

  • Investment properties will go first
  • Expensive to own property

New Miniseries overview

Hi everyone, and welcome to Finance and Fury. Today won’t be a full episode, unfortunately, I am a little unwell. I am providing a bit of an overview of what the next few episodes will be about. When making investments, it’s all about considering what will be the best...

Furious Fridays: Elon Musk, Tesla and how CEOs affect share price

Furious Fridays Elon Musk, Tesla and how CEOs affect share price Today we’re talking about the markets, how CEOs affect share price and how public perceptions can make or break. We look at Elon Musk. Musk is a business magnate, investor and engineer. He is the...

Why the Australian Share index is so reliant on just 5 companies and the risks that this brings

Welcome to Finance and Fury Today we are discussing the concentration risk Last week – how the modern banking system acts like dominos failing– Due to their liabilities and obligations to one another this week – look at the other side of the balance sheet – Which is...

Furious Friday: Is cheaper better, or do you get what you pay for?

Furious Friday Is cheaper better, or do you get what you pay for? Welcome to Finance & Fury’s ‘Furious Friday’! Today’s misconception – Is cheaper better, or do you get what you pay for? Met with a client this week for an initial appointment – He had been reading...

5 property investing myths you have to stop believing immediately.

Welcome to Finance & Fury! Today we’re talking about five property investing myths you have to stop believing. At the moment property has gone from being the most talked about, exciting thing… to the most talked about, negative thing. Since 1994 there has been...

Furious Fridays: What happens if the EU collapses?

Furious Friday What happens if the EU collapses? Welcome to Finance & Fury, the Furious Friday edition. For the past few weeks we’ve been talking about the EU and this week we’ll finish up by looking at the flow on effects of the EU breaking up. There’s no way to...

Say What Wednesdays: Shorten Vs Morrison

Say What Wednesdays Shorten vs Morrison Government "Spending" Everything is portrayed as a ‘cost’, which is ironic. “Costs” from the Government’s perspective is simply NOT charging you tax. Not taking all income earned is a trillion-dollar cost to them.  ...

How I buy shares – the horror stories and the happy endings, plus technical vs fundamental analysis

Say What Wednesdays How I buy shares - the horror stories and the happy endings, plus Technical vs Fundamental Analysis Welcome to Say what Wednesday Today's question is from Emma. She says, “I'm new to the podcast so not sure if you have covered this in the past. I...

Don’t get tricked! How to avoid living in a Trauma-based society by building towards your own future

Welcome to Finance and Fury, the Furious Friday Edition Today's episode is number 3 in this series – check out last 2 FF eps  episode 1 episode 2 Last ep – talked about media and the realities that they create – but they are not consistent – and massive hypocrites...

How to invest to achieve your goals?

Welcome to Finance and Fury   Today – Talk about goals based investment – setting up buckets of investment allocations to meet needs Approaches to portfolio construction three common approaches in building the framework of a client’s investment solution:...

Pin It on Pinterest

Share This