Over the year to end April, dwellings in the most expensive capital city suburbs recorded a -5.4 per cent loss (see second chart). In contrast, home values in the middle 60 per cent of suburbs were down by only -0.9 per cent. Dwellings located in the cheapest 20 per cent of suburbs were the best performers, hardly moving (-0.5 per cent).
Perth values have recorded the largest fall of any capital city over the 12 months to April, down -7.1 per cent (s.a.). Brisbane has suffered a similar fate, with home values off -6.8 per cent (s.a.).
Housing prices fall in year to May
House prices have fallen almost three per cent so far in 2011 as potential home buyers choose to save their pennies rather than bid for real estate.You are so desperate to throw in a cliché that you included one about pennies? I was thinking that the press was finally willing to carry news about declines, but this sort of flippancy reveals how out of touch they are with the absurdity of prices.
Added: Also, they are not "saving their pennies". According to the ING Direct Financial Wellbeing Index, essential spending is UP 7.5% and it is going on credit cards, which rose from a median of $1775 in Q1 2010 to $2505 in Q4 of 2010. Journalism and cliché fail.
RP Data research director Tim Lawless said the housing market was soft as potential home buyers focussed on saving, not spending, because they were worried about the economy.Please. Ponzi schemes need an ever expanding influx of new cash or they collapse. It has little to do with saving versus spending and everything to do with a plateau in available credit for expanding the bubble farther. Foreign investors have gotten skittish. Don't want to just say that, I guess. Better to blame the consumer. Might as well be prepared for the consumers to be blamed for the entire thing, btw.
Mr Lawless said house prices in Perth had been falling since late 2007 due to a lack of buyer demand, despite strong population growth and low unemployment in the West Australian capital"Buyer demand," not "buyer access to ever increasing credit". Eh, the press is still hopeless.