Comments on: Housing Market Drops Housing Prices by 16%

By: one of the wolves

one of the wolves — Thu, 19 Jun 2008 22:27:20 +0000

mrclean, of course its going to hit here, houses are overpriced out the wazoo. china could have been our rock to hang on to but as bill has said they own far too many greenbacks which are looking more and more like toilet paper.

By: christina

christina — Wed, 18 Jun 2008 15:01:05 +0000

Hey, Mr Editor, Ive got the best idea for your 130 window mansion. You can rent out one room each to poor people who cant keep up with their mortgages. Or one family in each room. They will be happy because they wont be homeless, and you will be happy because you will collect a stack of rents. Then you can use some of the rent money to hire a workman in overalls to do the repair work for you, while you sip a cocktail. Napoloen Hill did it int he 1930's for a hotel that had 100% vacancy. He put the prices a bit cheaper than everywhere else so everyone flocked there. Getting a bit les money than normal rents is better than gettting no money at all. And then, afer the depression ends, you can put the rents up. The folks in Napoleon Hills example were so thankful, that after the depression was over, they all stayed in the same place renting, instead of moving out. And the owner was so thankful for that, that he kept the rents the same loe price for another year. You could do that Mr Editor. Good luck Kind Regards, from Christina in Australia

By: christina

christina — Wed, 18 Jun 2008 14:39:21 +0000

Hey, maybe the Chinese and Indians can start sponsoring Americans for $40 a month. The roles have been reversed.

By: POPEYE

POPEYE — Wed, 18 Jun 2008 08:11:53 +0000

What would a technological revolution in housing do to the market? Negative carry would look even worse if people realized how outdated most of their "investment" was.

Also, suppose 0 inflation. How could the next generation and the generation after continue to pay more and more money for something that is older and oler? Seems like housing is already at a "stressfull" level, people cant pay more.

Doesnt mortgage stress = bubble break point?

What % of immigrants can afford to pay 600K for a house??

How much money does the realestate industry put into blowing up the bubble and patching the holes??? Or is it a bias problem because most people have a house and therefore the journalist would love to see houses go up??

Is there ANY real fundamentals that suggest housing can go up (in AUS)??

HMMM, you cant pick the pop, but you know when its time to block your ears.

By: Mr_Clean

Mr_Clean — Wed, 18 Jun 2008 05:47:19 +0000

So, how does Australia sit within this? On the one hand we have the local papers talking up housing via "economic" reports (just yesterday in fact) predicating average house prices in Melbourne to go above $600k ! over the next 3 years due to high immigration. Exactly the same argument this time last year in the UK and look it now. On the face of it we seem to have worse fundamentals than the USA & UK. Houses way out of alignment with incomes, due to cheap credit and stagnant average incomes. Throw in the inflation problem, and it seems we are sitting on the edge of major correction as occurring in the UK & US.