4/19/2023 0 Comments Housing bubble![]() It just hasn’t happened.’ He bought the house six years ago and renovated it himself. ‘Someone would come in and go, yeah, that’s mine. “‘I thought we might sell it in the first week,’ he told 7.30. He is trying to sell the family home in Penrith on Sydney’s western fringe.” Keiran Edwards is experiencing the new reality first hand. “Stagnant house prices are likely the new normal for property markets in much of Sydney and Melbourne, analysts are warning as prices fall for the 11th month in a row. ‘People aren’t rushing in to hand over their keys.’”įrom ABC News. ‘There’s a whole lot of reasons to suggest prices are going to be weaker for a shorter amount of time, but it’s remarkably orderly,’ he said. “Market Economics managing director Stephen Koukoulas said this was a weak claim. ‘Mortgage stress and falling prices were the primary factors of concern on the program, which claimed the number of foreclosures was rising, and the banks were obfuscating the real numbers.” Experts have rubbished the claims made on Sunday night, saying the very worst case scenario was presented. “Experts have questioned claims of a 40 per cent drop in Australia’s house prices, made over the weekend on 60 Minutes. It’s negligent beyond words,’ one Reddit user said.”įrom Domain News. ‘They raked in the cash from dodgy loans for years and are crying wolf now. “However, others slammed the banks for handing out multiple interest-only loans to buyers. I hope this speculator gets burnt first,’ one Reddit user said.” You a) knew this would happen and b) assumed the bank would renew it when it expired. The bank didn’t ’suddenly change’ your repayment from (interest only) to (Principal and interest) your IO term expired. ‘The interest only part annoyed me the most. “That was in response to comments made by one homeowner on the program, who said the bank had ’suddenly switched the mortgage to interest and principal,’ raising his repayments by 57 per cent. One Reddit user branded the report as an example of ‘alarmist journalism and scare tactics,’ while another said it was ‘dramatic and cringe-worthy.’ And some said it was unfair to blame the banks for the situation, and that homeowners needed to take responsibility for their own decisions.” “However, the segment has also sparked backlash online, with some claiming the situation had been exaggerated. But property investor Bushy Martin said the blame lay squarely at the feet of buyers who ‘mortgaged themselves up to their eyeballs’ in a bid to snap up dream homes before being able to afford them.” “60 Minutes also spoke with several Aussie homeowners who gave harrowing details of the stress they faced trying to pay off their mortgages, including having their power turned off and being ‘hounded’ by their banks. ‘The mortgage stress is definitely being felt especially in this area,” he said. He said foreclosures had also risen by 600 per cent in the region. “It’s a sentiment shared by Laing and Simmons real estate agent Peter Younan, who said the median house price in his patch in Granville in Sydney’s west had dropped from $1.2 million to $1 million in just one year - a shocking $200,000 plummet. ![]() ‘We’ve got a debt bomb, we’ve got a debt crisis and at some point it’s going to explode in our face.’” ‘As a society, and as a government, and as a regulatory system, we’re all banking on the home price engine that just goes on giving and giving and giving. “Mr North said Australia was now in the same position as the US was back in 20 - a position which triggered an economic collapse. ![]() That’s higher than any other country in the Western world by a long way. And that’s about 65 per cent of their total lending. There’s $1.7 trillion held by the banks in mortgages for owner-occupies and investors. ‘At the worst end of the spectrum, if everything turns against us we could see property prices 40-45 per cent down from their peaks, which is a huge deal,’ he said. “Mr Steinfort spoke with data scientist Martin North from Digital Finance Analytics, who said Australia was uniquely vulnerable when it came to an economic crash tied to a property downturn. ![]() According to reporter Tom Steinfort, the current slump is actually ‘more like falling off a cliff,’ with a number of real estate and finance experts claiming houses could plummet in value by up to 40 per cent in the next 12 months.” That’s according to the sobering 60 Minutes segment Bricks and Slaughter which aired last night, revealing the country’s property downturn was just the tip of the iceberg. “Australia is facing a ‘debt crisis’ - and the property market and our entire economy are at risk as a result. A report from the Ballina Advocate in Australia.
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