Australian Housing

When you read articles about Australian housing affordability, it is often comparing the single average adult wage to house prices, from generations ago.

The articles generally say something like, ‘a house was worth three times the annual average wage back in the sixties and is now worth 10 times the average wage. This shows housing has become unaffordable.’

You can’t compare the two because back in the sixties it was one wage bidding on real estate.

The state of Australian housing

The days of Dad going off to work, while Mum tends the children are long gone, just like the black and white TVs of that era.

It is now usually at least two incomes bidding on Australian real estate, land price has quickly factored that in. So you can’t compare the two figures.

These days you need to find historical figures for combined household income and compare the two.

When you do that you may find housing affordability hasn’t run away at all, but is simply keeping pace with wages.

Is THIS as Bad as It Gets?

Our central bank hasn’t taken us down the road of no return, yet. But we now find ourselves at a pause. Aussie economists are licking their fingers, putting them in the air and seeing which way the wind blows.

Have Banks Put their Needle in the Housing Bubble?

Normally, interest rates are to blame when property prices head south. With each rate move higher, more would-be buyers decide that they will sit on the sidelines. It also makes it tougher for those already in the market. However, property investors can’t blame the RBA this time.

Aussie Banks Toying with the Property Market

Aussie property hasn’t lost its cachet, yet. But prices, as you would have seen, continue to fall. The fall likely has more to do with borrowing ability than confidence. However, there’s one thing the Aussie property is telling us. It’s proving the complete ineffectual role of banks…

And the Chart Shall Set You Free

For a dramatic crash in the economy (and house prices), you’d want to see signs of distress in the economy. That’ll show up as softening rents. Now, if you’re a property investor, this is where a little share market knowledge is helpful.

Could Virtual Land be the Answer to the Aussie Property Crisis?

With property prices falling fast, a lot of ‘experts’ are starting to come out and say that now is a good time to pick up a bargain. I don’t know about you, but personally I wouldn’t be too eager to jump in yet. Could virtual land be the answer to the crashing property market?
Money Morning Australia