Category: Home Prices

DFA Latest Scenarios And Live Event October 2019 (HD Edited)

We ran our live event last night. This is the edited edition in which we discussed out latest scenarios.

The original version, with live chat replay is also available. Formal show starts at 34 mins in.

Light At The End Of The Tunnel, Or An Approaching Train? – The Property Imperative Weekly 12 Oct 2019

The latest edition of our weekly finance and property news digest with a distinctively Australian flavour to 12th October 2019.

Contents

0:30 Introduction
1:20 US China Trade
3:10 US Markets
5:20 Fed Market Operations
10:10 Canada
10:50 Brexit and UK Markets
13:20 EU
14:00 China

15:05 Australian Section
15:10 Aussie Banks Under Pressure
18:40 Economic data and trends
21:25 Consumer and Business Sentiment
23:00 Property prices
26:20 Building Defects
31:15 Aussie QE
32:10 Aussie Markets

Chris Bates: More From The Property Market Front Line

I discuss the latest with Chris Bates, Financial Adviser and Mortgage Broker, and we also answer some viewer questions. Is the property market in recovery mode now? Is so, where?

Chris can be found at www.wealthful.com.au & www.theelephantintheroom.com.au plus via LinkedIn: https://www.linkedin.com/in/christopherbates

If you have a questions for Chris and I, send it via the DFA Blog

DFA Live Q&A 16 July 2019 [HQ Replay Edition]

This is the edited high quality and tidied up version of our live session, where we walked though our scenarios once again and answered viewers questions.

We updated our scenarios once again.

The original live recording, with live chat, which you can watch in replay is here:

Confidence Fades As APRA Caves Again… And Other Stories

A quick round-up of some of today’s news, including the latest falls in unit sales, APRA’s latest climb down, consumer and business confidence and ASIC move to curtail some of the excesses in the short term consumer credit market where people might pay 990%.

High Rise Units Worth $150k Less….

Apartment owners in high-rise units are realising their properties are worth less than they paid for them as rampant oversupply and falling demand send real estate values plummeting. Via RealEstate.com and The Daily Telegraph.

Recent sales figures indicated multiple unit owners made a loss on their investments, with some apartments in high rise buildings selling for up to $150,000 below what the sellers paid.

Such sales were particularly prevalent in construction hubs such as the suburbs of North Ryde and Rosehill, near Parramatta.

The suburbs were among the few Sydney areas where average prices have fallen below what they were in 2014, according to research from CoreLogic.

Multiple units in this complex on Allengrove Crescent in North Ryde have sold at a loss for the sellers, including one for $150K less than the vendor paid.

Median unit prices in the suburbs were 2-5 per cent cheaper than they were five years ago.

Median prices in other suburbs with a high supply of new units such as Hillsdale, in the Botany area, and inner west suburb Lewisham were below their 2016 levels, along with Zetland and Kellyville.

Suburbs with such deep drops in prices remained rare considering real estate values skyrocketed in the years between 2013 and 2017.

Home Value Falls Continue In June, But A Subtle Change In Places!

CoreLogic reported a 0.2 per cent fall in national dwelling values, the smallest month-on-month decline in the national series since March 2018, according to their June Home Value Index .

On a quarterly basis, every capital city housing market has recorded a drop in value, highlighting the broad geographic scope of this housing market downturn. Annually, the average fall is 6.9%, but regional WA is down one third from peak 5 years back and Darwin down 30.1%, thanks to the wider economic downturn there.

Sydney and Melbourne dwelling values have recorded their first monthly rise since 2017 with Melbourne values increased 0.2 per cent across the past month, while there was 0.1 per cent growth in Sydney.

According to CoreLogic head of research Tim Lawless, the June results presented an early sign that lower mortgage rates and improved sentiment were already having a flow-on effect for housing market conditions in Sydney and Melbourne, while most other regions of Australia continued to show relatively soft housing market outcomes.

“The subtle rate of decline was heavily influenced by trends across Sydney and Melbourne where the pace of falling home values has been consistently reducing over the year to date,” he said.

“Importantly, the improving conditions through to mid- May were largely ‘organic’, pre-dating the positive boost in sentiment following the federal election and interest rate cuts in early June.”

The only other regions to record a rise in housing values over the month were Hobart (+0.2 per cent), as well as the regional areas of South Australia (+0.1per cent) and Northern Territory (+0.2 per cent).

The largest falls over the past three months were recorded in Darwin (-3.6 per cent) and Perth (-2.1 per cent) where the weaker trend has persisted since mid-2014.

Adelaide recorded the smallest decline amongst the capitals over the quarter, with values down 0.4%.

Across the regional markets, values were 0.4% lower over the month to be down 3.1% for the financial year.

Dwelling values recorded a rise over the June quarter in Regional South Australia (+0.6 per cent) and Regional Tasmania (+1.3 per cent).

Mr Lawless said although these areas have recorded modest gains over the quarter, the trend across the regional areas of Australia is generally “one that is losing momentum”.