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

Furious Fridays: The secret to mobilising masses

Hi everybody and welcome to Finance and Fury the Furious Friday edition. Today’s episode is the Stages of Socialism Part 3 – the series talking about politics. The first episode was about the Fabians and their strategies, then we addressed the political spectrum and...

Furious Fridays: Death by Demographics

Furious Fridays Death By Demographics Welcome to Finance & Fury’s Furious Fridays… This week we continue looking at the EU. If you didn’t catch last week’s episode, you might want to check it out here. It explains what the EU is, and what their role in Europe...

How to not get screwed over when buying property

Episode 28 How to not get screwed over in property, the warning signs of scams and how to do your property research Warning signs of scams Off the plan/cold calling companies Buying off-the-plan, or purchasing a property that has yet to be built – The time between the...

Michael Matusik; Where houses and units are sitting and in which direction their prices are likely to move

Episode 37 Michael Matusik; Where houses and units are sitting and in which direction their prices are likely to move In today’s episode, Jayden interviews Michael Matusik, an independent housing market analyst. Michael aims to be a voice of reason amongst the...

Say What Wednesdays: High Roller; Start Investing with $1,000

Say What Wednesdays High Roller; Start Investing with $1,000 Welcome to Finance & Fury, the Say What Wednesday edition, where we answer your personal finance questions each week. Today’s question comes from Tara; “Hi Finance & Fury, love the show! I was...

Goals for the New Year

Welcome to Finance and Fury Welcome to the new year, depending on when you listen it may be new year’s eve or the new year  Hope you are in for a good night, or not recovering from one. Starting off with a question; looking back on the year, are you in a better...

Say ‘What’ Wednesdays: Is it time to jump ship? Should you sell your bank shares?

Say 'What' Wednesday Is it time to jump ship? Should you sell your bank shares? Today’s question comes from Jake. He asks “should I sell my bank shares, given the recent fall out from the royal banking commission?” IMPORTANT: This episode comes with a general advice...

Furious Friday: Do you work full time? Are new tax cuts only going to the “top end of town”? Is this “selling Queenslanders out”

Furious Friday Do you work full time? Are new tax cuts only going to the “top end of town"? Is this "selling Queenslanders out"? Welcome to Furious Friday… The Tax Bill has Passed…Yay! Now, let’s clear up a little misconception floating around, we’re going to talk...

Say What Wednesdays: China’s Social Credit Scoring; class systems, socialism, communism and exterminating ‘undesirables’

Say What Wednesdays China's Social Credit Scoring; class systems, socialism, communism and exterminating 'undesirables' Welcome to Finance & Fury, the Say What Wednesday Edition, where every week we answer questions from you guys, the listeners! This week’s...

The skinny on spare change investment apps and building wealth when you’re earning $25,000 or less a year.

Say What Wednesday The skinny on spare change investment apps and building wealth when you’re earning $25,000 or less a year. Welcome to Say What Wednesdays – Where we answer your personal finance questions each week. Two questions this week from Chris: No 1 what are...

Pin It on Pinterest

Share This