Re:A global house-price slump is coming
by bamboozled on Saturday October 22, 2022 @01:56AM
(#33295935)
Sorry I meant 200k more than the current market value. I have friends in realestate in Australia who told me this. The only way they are selling property today is by dropping one to two hundred thousand off the Jan/Feb price. However many many people purchased within the last year at such inflated prices. They said during covid, most things were sold the day they were listed.
So the majority of recent buyers are servicing loans much larger than their current house is worth, and paying more interest on top of that.
I’m sure it will “go back up again”, but it doesn’t seem like there are any events in the near future which are likely to kick off another massive boom, all signals are pointing towards a property slump.
Australian here, $200k would be a dream! You're off by a factor of ~4.6: https://www.abs.gov.au/statistics/economy/price-indexes-and-....
Over the past few years the appreciation on housing has meant that for many people their shelter, and entirely non-productive asset, has outpaced their own earnings. For anyone not on that rocket ship, good luck.