Australian property market crashing fast

RATM

Having been through the boom and bust cycle most people on here recognised that Australian property prices appeared vastly overinflated and also the hysteria that seemed to take over the populace at large as well as the bible sized supplements in the national newspapers.

It's been sliding in some areas for a year now but now the two biggest cites Sydney & Melbourne began declining at an astonishing rate in May- Sydney prices dropped by 1.2% over the month and Melbourne out did that by dropping by 2.7%. Since May 2011 the drops have been 3.6% in Sydney and 8% in Melbourne. It now seems like the crash is accelerating at a rapid rate if May's figures are to be believed. These price drops all happened despite the Reserve Bank dropping interest rates in an effort to stimulate the market.

Full article here
http://www.smh.com.au/business/home-prices-extend-national-retreat-20120601-1zlm6.html

I remember living in Sydney in 1999-2000, before and during the Olympics and then visiting back there in 2002. Prices of everything had exploded in the city post-Olympics and they've pretty much been on an economic boom since then. I'd fear to think what the price of living is like now in Sydney, it must be astronomical compared to a decade ago.

Doc Ruby

It was only a matter of time in fairness. Its a wonder how these countries don't just look at what's been going on elsewhere. Australia should be more or less okay though since they have huge mineral resources being bought up by the Chinese.

johnnyjb

The impression i got is that China isnt buying as much since us in the western side of the world have no money to buy their goods.

Im uneducated in the mater so that is pure speculation on my behalf.:D

washman3

RATM wrote: »

Having been through the boom and bust cycle most people on here recognised that Australian property prices appeared vastly overinflated and also the hysteria that seemed to take over the populace at large as well as the bible sized supplements in the national newspapers.

It's been sliding in some areas for a year now but now the two biggest cites Sydney & Melbourne began declining at an astonishing rate in May- Sydney prices dropped by 1.2% over the month and Melbourne out did that by dropping by 2.7%. Since May 2011 the drops have been 3.6% in Sydney and 8% in Melbourne. It now seems like the crash is accelerating at a rapid rate if May's figures are to be believed. These price drops all happened despite the Reserve Bank dropping interest rates in an effort to stimulate the market.

Full article here
http://www.smh.com.au/business/home-prices-extend-national-retreat-20120601-1zlm6.html

I remember living in Sydney in 1999-2000, before and during the Olympics and then visiting back there in 2002. Prices of everything had exploded in the city post-Olympics and they've pretty much been on an economic boom since then. I'd fear to think what the price of living is like now in Sydney, it must be astronomical compared to a decade ago.

Exactly as predicted by David McWilliams last year..!!!
But of course he was once again lambasted by the vested interests.

Zambia

I have to ask what do you consider crashed? I asked this question on this forum in 2006 re the Irish market and people stated 20% fall was a disaster. Essentially a fall is required the Aussies are well aware of it. If fhb are not getting in the market Will fall till they get in.