Lending Specialists Melbourne is going to share the recent issue about the softening of housing prices in Australia.
According to Core Logic RP Data, the housing prices have started to fall in 36 of the Harbour City’s 700-odd suburbs including most areas that have had the highest home auction markets earlier of this year. In relation to the assessment of two housing economists, Lindsay David and Philip Soos, the Australian Real Estate market is on the edge of a cliff in experiencing the biggest housing bubble and Melbourne will be at the epicenter of this historic “bloodbath”. Lindsay David and Philip Soos state that politicians and the housing industry is at fault for prolonging the myth of housing shortages in major capital cities in Australia.
Business Insider Australia, however, claims that the Australian property market is a million miles away from crashing. They have stated a number of reasons why major falls in home prices in our capital cities is implausible.
Lending Specialists Melbourne is going to give these reasons for the awareness of our customers.
- A vigorous growth in the population due to immigration and to a natural population growth. Michael Yardney says that although immigration levels have dropped, Australia is still growing at a faster rate than any other country.
- A healthy economy that will be relentless to perform at a stable level that will create jobs for the people.
- A good banking system that offers reasonable rates, tight lending practices and low default rate.
- The rise of business confidence while having a more stable government at both Federal and State levels.
- The rise of consumer confidence with the help of Malcolm Turnbull being elected as the Prime Minister.
- Healthy level of household debt. Many Australians are saving more, taking on less credit card debt while paying the mortgages faster than they need, which improves the state of personal finance. This reduces the risk of the crash of house pricing if interest rates rise.
- A culture of home ownership. 70% of the people own or pays for their homes. In contrast to overseas markets Australians having high equity in their properties and a conservative debt position.
From Lending Specialists Melbourne ’s point of view, we tend to agree with the thought processes of Business Insider Australia and believe the market is cooling rather than collapsing!
If you have any questions or would like to discuss further, please do not hesitate to contact Lending Specialist Melbourne on (03)8805-1800 or email barry@lendingspecialists.com.au
Sources:
http://goo.gl/4JP3FM
http://goo.gl/pb9NXG
http://goo.gl/3wQS59
http://goo.gl/osClCQ
