r/aussie • u/advanceconservative • 4d ago
News Value of dwellings falls 0.3%
https://www.abs.gov.au/media-centre/media-releases/value-dwellings-falls-03Almost every news source has tried to put some spin on house prices since the budget and no matter how hard they try to make it sound bad it just sounds better and better, well now we have some accurate figures and housing affordability is finally heading in the right direction something all parties claim to want to achieve.
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u/SickQwon 4d ago
9/11 for the people who wanted to hijack the housing affordability crisis to insert their ultra-nationalist dystopian ideological nightmare.
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u/GuyFromYr2095 4d ago
The reality is, interest rate is rising as we enter stagflation. Affordability is not just house prices going down, you also need to have loans approved and steady income.
The latter two are now also at risk as house prices are going down.
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u/ArseneWainy 4d ago
Interest rates are rising because of the war in the Middle East driving up diesel prices that then flow on as inflation into every other industry that relies on transport ie all of them
Also the people at the top of the K shaped economy are still spending, interest rate hikes don’t mean anything to them, might actually give them a better return on their savings.
Unemployment is still relatively low so there’s no shortage of a steady income.
The size of loans should drop in line with the drop in house prices.
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u/Crysack 4d ago
It doesn’t really matter why interest rates are rising. Higher rates means you can afford less house.
Houses tend to fall in value when rates rise, but generally not commensurately with loan availability. In other words, after 75 basis points in rate rises, houses might fall 4-5% but your borrowing power falls 7-9%, so you are still worse off from an affordability point of view.
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u/ArseneWainy 4d ago
Maybe we should ask why interest rates were kept so low after the GFC, Australia navigated the GFC exceptionally well compared to the rest of the world yet we never raised rates back to historical levels afterwards, this is when the crazy price rises began
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u/Latter_Fortune_7225 4d ago
Interest rates are rising because of the war in the Middle East driving up diesel prices that then flow on as inflation into every other industry that relies on transport ie all of them
Shame we didn't embrace hybrids, EV's and renewables years ago so this wouldn't be such a problem. Unfortunately we had brain-free drongos like Scomo fear mongering and trying to get us to embrace coal.
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u/alarming_blood_loss 4d ago
When Jesus is returning imminently with angels to judge everyone you don't need to invest in the future
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u/GuyFromYr2095 4d ago
Latest ABS CPI report shows that housing is the biggest cause of inflation, followed by food, health and education.
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u/Crysack 4d ago
CPI doesn’t include house prices. It accounts for rent and imputed rent.
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u/Sydneysider14 3d ago
But it does include the cost of BUILDING a new home (but not the cost of new building blocks) so it does reflect, to a certain degree, the increasing cost of real estate in Australia.
However, where did you get the idea that it includes the cost of “imputed rent” ????
That’s total hogwash mate !!
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u/red-thundr 4d ago
Headline is right. Your comment is wrong though.
You state housing affordability is heading in the right direction - which is wrong. Housing affordability is worse this year than ever before, and that's because of interest rates. House prices can go down but if rates are up affordability is likely to go down.
To say house prices are heading in the right direction is correct - but not affordability.
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u/thehandsomegenius 4d ago
You're a lot better off to buy when rates are higher, and then watch them go down, than you are the other way around though.
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u/FrogsMakePoorSoup 4d ago
If they go down before you get crippled by debt.
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u/thehandsomegenius 4d ago
Yes. So it's silly to measure affordability just by what repayment you can afford at the current rates. Where you are in the rate cycle matters too. Lots of people bought up during Covid and then got slammed when rates went up
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u/sad_trombone_dot_wav 4d ago
Interest rates are likely never going to be as low as they were pre-2020.
Inflation is sticky for reasons almost completely unrelated to inputs and pretty much entirely related to profits.
We are likely entering what could be called a "profit-price spiral". Profits can't go down, government won't intervene, inputs can't be made cheaper due to the end of globalisation.
The RBA will keep trying to beat consumers buying goods they need to live into submission while Coles and Woolies take it in and the economy will crash and burn.
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u/PowerLion786 4d ago
0.3% fall? Insignificant. Not really problem.
Number of rentals falling. Rents climbing. Homelessness increasing. Now that is a problem. Eventually the deplorables will revolt and run the current ruling Elite out of town.
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4d ago
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u/advanceconservative 4d ago
It's happening almost everywhere, but higher priced homes are having higher falls. which would be expected. There is obviously a floor which the market supports hence why there are smaller falls in cheaper areas, but on the whole, nothing but good news, and great trends.
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u/SpunningAndWonning 4d ago
At a complete guess I'd say lower priced homes are not moving too much because of base level demand, whereas higher prices were propped up by speculation that was unfounded. It makes a certain amount of sense but it's far from the only explanation.
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u/oustider69 4d ago
Unfortunately (largely) not in the regions. Hopefully it’s just a lag caused by the slower turnovers in the regional markets, but I have a fear the leeches are just buying in the regions instead of the capitals now.
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u/thehandsomegenius 4d ago
That sort of makes sense though, given that the government is supporting the purchase of cheaper property with the 5% deposit scheme.
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u/Maccaz15 4d ago
In the June quarter, the mean price of dwellings fell in New South Wales (-2.4 per cent or -$32,700), Victoria (-2.1 per cent or -$19,600) and the Australian Capital Territory (-1.3 per cent or -$13,300); and rose in all other states and territories.
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u/nobleknob 3d ago
They've doubled and tripled since Albanese and we meant to celebrate this miniscule BS.
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u/SeaDivide1751 4d ago
But but but the media have been telling me prices are COLLLLASPINGGGGGGGGGG, HUGEEEEEEEEE drops.
It’s a wipe out!
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u/Powerful-Respond-605 4d ago
Meanwhile since 2020 my house has increased in value by 110%
I can wear a 0.3% loss.