8 Bowley Avenue Balwyn sold at Auction Sale 08/10/2011 for $2.6m

And highest figures published up there may not be correct!

Well, here we are in May 2011. Parts of the Australian property market are in freefall. Try selling a house in many parts of coastal Queensland at the moment. All capitals are declining except Sydney. Brisbane is looking rather sick.

The phases of a downturn are: Anxiety, Denial, Fear, Desperation, Acceptance.

When I last wrote, we were in the DENIAL phase.

Everybody, welcome to the FEAR phase of the downturn.

By the end of this year, we’ll definitely have entered the DESPERATION phase. This could go on for some time; the Japanese did it for over a decade.

If anyone is to take your blog seriously you might want to quote figures from a more ‘credible’ non vested source?!

http://s4.zetaboards.com/Australian_Property/blog/main/3271816

Sadly this means every spare dollar of household income is spent on overpriced housing and capitalized into ever increasing house prices as young families battle for decent shelter while speculators unfairly hoard the available housing stock! Quite unfair really. Cheers, Sean.

Why you would bring these two people into a business which already holds a colorful history with ASIC is beyond me. It will be interesting to witness what’s next.

‘CLEARANCE rates in the major cities continued worsening at the weekend, with house sales significantly lower than the same time last year.
In Sydney and Melbourne, auctions hit a 52-week low of 49.8 per cent and 55.6 per cent respectively, according to Australian Property Monitors.

On the corresponding weekend last year, Sydney auctions cleared 70.5 per cent of homes and Melbourne’s clearance rate was a healthy 78 per cent, The Australian reported.’

or your site????

I’ve supplied this report titled, ‘If you want to own property, get a significant other first ,’dated February 26th, 2010 by RP Data Research. The reason being that I have a business that supplies labour. I have been approached by numerous parents asking me if I had any positions available as we operate 24/7. In the most extreme example the median house price in Sydney is 8.2 times greater than the average annual income.
I”m starting to realise that 8.2 is a very likely scenrio as I can see these people getting tired and stressed. One parent a month ago asked if it was ok to let her son play without soccer boots. She’d forgotten them at home, and worried more about the cost of the fuel then the incoveniance.
I would descibe it a subprime mortgage belt in my area if we were to have a recession.

http://blog.rpdata.com/?p=215

In the most extreme example the median house price in Sydney is 8.2 times greater than the average annual income and in the least severe of examples median house prices are only 5.8 times greater in Hobart. For units the results aren’t as dire, in the worst case Melbourne units are 6.3 times greater than the annual income and in the most affordable city, Hobart, median units cost 4.7 times more than average annual incomes.

Although the information does claim that it NSW Housing is afforable at 4.1 of dual income it is quick to inform that it is not based on Disposable income described in the paragraph below.

Now it is important to note that this figure relates to earnings not ‘disposable income’ – so from this figure you must subtract income tax and add income from other sources such as investments (we aren’t going to do that for the purposes of this exercise).

This isn’t just about affordability as it is a social delemma as Australians are forced to work harder, as they are exploited for being in the financial position that they are in.
RP-Data Rismark has as responsibility to acknowledge a socialogical problem if they are going to comment on affordability or they can choose to simple supply the data without commentary. We are breeding a culture of latch door kids as they will be no parents at home. Then consider the mental health issues pertaining to this so called affordability.

It boggles the mind how anyone could write about the Australian housing bubble and not mention the one thing that the government did in 2008 that stopped a correction, which was underway at that stage. They implemented the ‘first home buyers boost’, thus spurring the speculative mania to new heights. It was after this boost was implemented that we saw price rises of over 20% per annum in Melbourne.

At the current time, Australian housing is expensive by pretty much any measurement you care to name, the Australian people are maxed out on debt, and our government is working as hard as it can to make sure that it is maxed out on debt too. The net result of the GFC was to make the West’s governments take on massive debt to underpin growth, because the private sector had become insolvent. It won’t be long before the West’s governments are as insolvent as its private sector, and that’s when GFC II will hit.

When GFC II hits (which it will in the not too distant future), we will be facing declining exports, a government with huge debts (which it will be unable to refinance) and shrinking tax receipts, a private sector drowning in debt, and rising unemployment. At that point, the government will simply no longer be able to afford negative gearing and housing stimulus. It will be a perfect storm… a series of connected bubbles all bursting at once.

Remember, all that debt that we’re collectively in must be paid back at some time in the future, or we must steal the wealth from the lenders through inflation. The debt is now so enormous that paying it back or inflating it away will induce a deep recession or depression.

Our ability to ‘buy now, pay later’ is almost done. Later arrives this year.