Friday, 29 June 2018

Australian housing sales' continuing decline, in one chart

Best Asia Real Estate Editors Comments:


As I have been predicting since last year Australian real estate in most major cities, except perhaps Perth is on it's way down.

I just returned from Sydney, and can can confirm that the real estate market is pretty gloomy.


This real estate downturn in Austrian real estate may take longer and be more dramatic than normal.

Why, because I find most Australians believe that even if they are in a downturn they feel it will be short and they better just hold.

I on the other hand believe this is going to be a very dramatic downturn, similar to what we had in Bali in 2014 

Before it's all over prices may drop 20 to 50%. 

Probably the more expensive the property the more it will drop.


Australians who have substantial equity in real estate, especially baby boomers, should consider selling now and moving to greener pastures such as Bali only 2.5 to 5.5 hrs away.

They can buy a brand-new 200 m² private two-bedroom private villa with private swimming pool in a great area for as little as $200,000. Also the cost of living is 63% less than Sydney.

Bali Luxury Retirement Villas Starting at A $198.000

Bali Luxury Retirement Villas Starting at A $198.000

Bali Luxury Retirement Villas Starting at A $198.000

 Contact me for more information about this opportunity that is not even published yet. lawrenceb@ptbali.com




Right now, and largely reflecting the housing market slowdown seen in Sydney and Melbourne over the past 12 months, not only are transaction volumes below the average seen over the past decade, they're also moving back towards levels last seen during the global financial crisis. Rob Homer
by David Scutt

If the chart below is anything to go by, times are getting tougher for any individual, business or government that relies upon turnover in Australia's housing market.

From CoreLogic, it shows the amount of settled housing transactions in Australia on a six-month moving average basis.

For clarity, CoreLogic says off-the-plan sales are not counted until completion, meaning there will be some upwards revision to recent sales volumes given the high volume of units currently under construction across the country.

Right now, and largely reflecting the housing market slowdown seen in Sydney and Melbourne over the past 12 months, not only are transaction volumes below the average seen over the past decade, they're also moving back towards levels last seen during the global financial crisis.

The amount of settled housing transactions in Australia on a six-month moving average basis. CoreLogic


"Nationally, 465,788 settled house and unit sales transacted over the 12 months to May 2018 with the annual number of settled sales 7.7 per cent lower over the year," says Cameron Kusher, research analyst at CoreLogic.

"The monthly data points to a declining trend in transactions with settled sales now sitting lower than the decade average."

Explaining the decline in the national measure, CoreLogic says settled transactions fell heavily in Sydney, Melbourne and Brisbane — Australia's largest housing markets — compared with the levels seen in the year to May 2017.

Over the past year, settled sales fell by 13.5 per cent in Sydney, 12.9 per cent in Melbourne and 12.1 per cent in Brisbane.

They also slid by 7.4 per cent in Hobart, 5.8 per cent in Darwin and 10 per cent in Darwin over the year compared with the prior 12 months.



Only Adelaide and Perth, at 2.5 per cent and 1 per cent respectively, saw sales increase from 12 months earlier.

Given the likelihood the recent Sydney and Melbourne-led national price downturn will continue in the period ahead, Kusher says settled sales will probably fall further, creating challenging market conditions for those reliant upon turnover in the housing market.

"With dwelling values now falling and tighter credit conditions it is reasonable to anticipate that transaction volumes will continue to trend lower," he says.

"Fewer sales means less turnover, which means less commission and less stamp duty revenue for state governments."



This story first appeared in Business Insider. Read it here or follow BusinessInsider Australia on Facebook.




















BusinessInsider.com.au


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