On the one hand, people want the value of housing to continue to increase which benefits homeowners and those with investment properties. Then on the other hand we're battling with skyrocketing rent prices and house prices which have gone up enormously.
Heck, there was a house I rented which sold for $570k in 2020 and is now worth approx $760k.
So when I read in the article "The grim outlook for the 2023 property market has come from investment bank Jarden, which said the Reserve Bank’s “hawkish” interest rate hikes to calm inflation was to blame." I have little sympathy.
It's a grim outlook perhaps for those who either own a property or own multiple, but not for many of us looking to buy our first home. The house prices are going down to adjust to where they should have been prior to the increases in inflation.
First home buyers cannot afford and shouldn't be buying in a market where we have recordly high interest rates and properties that have increased in value in the short term by upto 40%. It's peoples first home for god sake.
House prices and the associated interest rates have skyrocketed so much in the short term that agencies are seeing people who bought and built homes can no longer afford it during settlement. Where a home that was purchased 1-2 years ago upon finishing can no longer afford it and that's taking into account the loan serviceability buffers which banks have had in place.
That's the price of an average at best 1 bedroom condo where I live. Shit is cray
To get into that, which would in most previous years be the next logical life step, I'd be going from splitting a $1500 studio basement suite with my gf, to splitting a >$4k/month mortgage after saving 120k for a down payment.
Frigging pissed that house prices in suburbs around my Atlantic city are already basically full rebounded to the off the wall insane batshit prices they peaked at. Fuck this no families will ever be able to sustain this shit. This is ruin.
As an IT consultant, I'm somewhere in the top 2% earning level, and I can't afford a house unless I move somewhere 2 hours drive from the CBD and eat nothing but canned beans for a decade. Forget ever going on a holiday ever again. Grow your own veggies and learn darning so you can repair your socks instead of splurging on new ones.
There was an interview with the Deputy Treasurer where he said with a straight face that there wasn't a housing affordability crisis. The journalist pointed out that his salary as one of the top public servants on the nation wasn't sufficient to purchase the median house in any of the capital cities. The treasurer then politely suggested that citizens should move to one of the "lovely" country towns. Nope, turns out that he couldn't afford to make the repayments in most of those too. Newcastle? Nope. Bathurst? No. Wollongong? Hah, no! And so on. The first town where he would be eligible for a loan was a place I had never heard of.
That's where we are right now as a nation. The boomers had climbed to the top and pulled the ladder up behind them.
Can't we get a break anywhere on the internet from these asinine house price prediction articles?