Tuesday, November 15, 2011

Australians Becoming Reluctant About Buying Houses

Percent of people intending to buy a house in the next 12 months:
January 2011: 21.6%
May 2011: 19.1%
September 2011: 16.9%

I don't know historically what percent act on their intent every year, nor do the older surveys include this data point, but that's some serious churn even it if it's half. If transaction costs are 10% of $450,000 (the median this year) and half of those 22% with intent actually bought, that would be $4500, averaged across all households, being thrown away on real estate transaction costs. About what is spent on clothing/footwear and health care combined.

Property buying losing appeal even as prices retreat
The survey said buyer reluctance was reflected in price expectations, with 46.4 per cent of respondents predicting lower house prices next quarter, more than double (20.9 per cent) the figure nine months ago.
Takes a while for change to sink in with people.


jesse said...

"Property buying losing appeal even as prices retreat"

"even as prices retreat" ?!? Are they stoopid?


GG said...

Yes, they don't seem to grasp that supply and demand have already left the building.