Will LA And San Diego Follow Melbourne, Sydney?
One reader had this suggestion. "Instead of talking about being past peak, we are, let's look at Australia and UK for what will happen next. How far and how long?"
Here's a report from Melbourne.
heraldsun.news.com.au
"Melbourne's property boom has ended, with house prices heading for a slump, according to forecaster Access Economics. Access predicted the real value of average homes in Melbourne would fall during the next four years."
"Access director Chris Richardson warned baby boomers not to rely on their homes as a retirement asset. 'There's going to be very little capital gains in house prices over the next few years,' Mr Richardson said yesterday."
"The great surge in Australia's house prices ended early last year. At the peak of the property boom, house prices were growing at about 20 per cent. The 'nominal' or dollar value of houses would rise by 1.5 per cent between 2005 and 2009, but the real value of houses would fall by more than 1 per cent. Home owners would have to wait 10 years for the real value of their homes to reach the peaks of early 2004."
"'Melbourne's housing market was the classic bubble; it started earlier and ended earlier. Prices just went too far in 2001 and 2002,' Mr Richardson said. 'The bubble was driven by low interest rates and changes to the Capital Gains Tax.'"
"As measured by what proportion of the average wage is required to buy a house, Melbourne ranks as the world's eighth most expensive city. Sydney ranked third, after Los Angeles and San Diego in the US."
"At present, houses in Melbourne are worth more than six times a family's average income, with the median house price at $363,000." |
