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

The News Media Bargaining Code – the medias way of reclaiming their informational top spot on digital platforms

Welcome to Finance and Fury, the Say What Wednesday edition. This episode is a bit of a special episode –looking at some legislation in Australia that is currently underway – Has to do with the Government stepping in for the Monetisation of the news – which could...

Recent market volatility – is the market crashing? Are we on the way to another GFC?

Episode 33 Recent market volatility - is the market crashing? Are we on the way to another GFC? Welcome to SWW …on a Monday … because we have been receiving a LOT of questions about what’s happening with this so-called “market crash”, why has the share market dropped...

Cash rates decline – but will your mortgage repayments? As your savings rates certainly will!

Welcome to FF – RBA cash Rates are lower now – talk about flow on effects Today – Will you get mortgage cuts, how your savings will be affected, effects on the job market and wages.   Mortgage cuts Don’t expect the banks to pass on the Reserve Bank’s rate cuts in...

How can you tell that property prices will be high in a city?

Welcome to Finance and Fury,  Back from Holidays – spent some time in the USA - Got me thinking about differences in property and their pricing – seeing property prices vary differently state to state – city to city – want to do a Series on property and its prices –...

Understanding foreign currency

Episode 31 Understanding foreign currency Welcome to Finance and Fury. Before I start I want to say a massive ‘Thank you’ to our listeners. We cracked 150k downloads in the first 6 months which is phenomenal. Also, thank you to everyone who has taken up the course – I...

Why are profit incentives needed for a well-functioning society as opposed to trying to legislate this as an intended outcome?

Welcome to Finance and Fury, the Furious Friday edition. In this episode, I want to look at a core concept of economics – the need for monetisation/value of objects for them to exist – that is – that profits are a factor that help to maximise most outcomes in society...

Buying Property & Financial-Crash proofing your investments: how to get yourself into a position to survive any market correction

Episode 10 Buying Property & Financial-Crash proofing your investments: how to get yourself into a position to survive any market correction Financial-Crash proof your investments This is a flow on from the last Say What Wednesday, this episode talks about how to...

Should we be getting charged up for Electric Vehicles?

Welcome to Finance and Fury, The Say What Wednesday Edition Today’s question came from Matt and Lucas Labor’s plan for 50% of new cars to be electric by 2030 plus introduce a carbon emissions target for new cars. The Greens have one-upped this. Today we break down the...

The share market in March! Comparing now to 2008 and 2009 and which one we are closest to?

Welcome to Finance and Fury - Where are we at? Market has been going up - Looking at a chart – March in 3 particular years stand out – 2008, 2009 and 2020 – Why? They are each their own respective bottoms of the market after declines – In this episode - March 2008,...

Furious Friday: Will the EU fall apart?

Furious Friday Will the EU fall apart? Welcome to Furious Friday where we look at misconceptions in the media about the economy There is a lot of talk about fears that the European Union (EU) will fall apart – That this will cause a financial crisis Will it? A lot of...

Pin It on Pinterest

Share This