Browse Forums Real Estate 1 Mar 07, 2009 12:25 pm What if the first home owner grant is no more after June, would the house price fall after then?
The economic is looking to get more worse in the middle of the year, I see some of my friends lost their jobs, new graduate couldn't find work etc. I've been looking to buy a house since Feb. because of my worry that the First Home grant will be no more after June or be lowered. My budget is up to 390k and i see the 400k or lower market is very strong at the moment. While the higher end market is stall, according to the newspaper... From what I see the house price for the <400k house have risen recently like the peak time last year, as more first home owner rush to buy cheap houses and you can see the real estate agents are busying selling cheap houses . A cheap house rush like this will be intensified until June, assume the grant would be lowered or cancelled by that time. I am thinking weather I should gamble on my assumption that after June, grant is no more and since most people already bought houses, the cheap hosue market will turn to buyer's market? A 4bedroom 2 bathroom 14 yo house in Forest Lakes (brissy) selling for 390k is not reasonable , as the current economic crisis is so bad, I think 360k is the more reasonable. Re: Would Hosue price fall afterJune ? 2Mar 07, 2009 12:30 pm In this market, there is no rush to buy. Normally prices keep rising, but I suspect that things will be flat (or falling) for the next few months.
Like others, I'd prefer a better economy, even if prices were going up with inflation. Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: Would Hosue price fall afterJune ? 3Mar 07, 2009 12:38 pm I can only see housing getting much cheaper. Grant or no grant. When the US has a total collapse (expected later this year) that's when things will really shift. We haven't even begun to see the worse of it.
In related news to melbourne buyers this report is of some interest too. http://www.news.com.au/heraldsun/story/0,21985,25149517-2862,00.html Re: Would Hosue price fall afterJune ? 4Mar 07, 2009 12:54 pm This is exactly the reason why I pushed for a sale on my house ASAP…..so it wouldn’t loose MORE value than it already did!
Oh yes, they are going to keep going down. Internal and External Building and Colour Consultant Online - Worldwide http://www.denovoconcepts.com Re: Would Hosue price fall afterJune ? 5Mar 07, 2009 2:06 pm I do not know if house prices will fall much to be honest.
The cost of building materials is still rising due to the weak Aussie dollar, Porter Davis put the prices up on their range $1,000 this week - that is $2,000 up for the year to date. Re: Would Hosue price fall afterJune ? 7Mar 07, 2009 5:37 pm Casa2 Steel has dropped 8% so far this year. It's going to drop a lot further. We are net importers of steel though and the price of the Aussie dollar has fallen nearly 30%... Re: Would Hosue price fall afterJune ? 8Mar 07, 2009 5:43 pm I thought most housing steel in Australia was Bluescope Steel - which is made in Australia.
However will this only affect the price of steel frame homes or timber framed ones as well -if so, how? Re: Would Hosue price fall afterJune ? 9Mar 07, 2009 5:46 pm I doubt house prices will drop very much at all (if at all) on the low end of the scale.. They will just keep dropping the interest rates and the FHOG will probably be extended and hence keep prices stable. Re: Would Hosue price fall afterJune ? 10Mar 07, 2009 5:53 pm Helyn I thought most housing steel in Australia was Bluescope Steel - which is made in Australia. However will this only affect the price of steel frame homes or timber framed ones as well -if so, how? Steel is traded on the world market in US dollars. If it was cheaper here then the world would flock here and buy it all... Ed "ECOECO" At 'EcoEco', we design windows, we design the best windows, we do it for you, so that when you’re happy we are happy. Tel. 1800 326 326 Re: Would Hosue price fall afterJune ? 12Mar 07, 2009 6:26 pm Steel is cheaper now than same time last year.
It has fallen significantly (much much more than 8%) since its peak. Imported and/or local prices have fallen sharply since Oct/Now 2008. For timber-framed homes, there's still plenty of steel in the footings. Chris Re: Would Hosue price fall afterJune ? 14Mar 08, 2009 12:40 am An article in a property magazine (chinese) this week talks about the gov will increase the FHOG from 21000 to 24000 , dont know if it is true or it would just get scrapped .....
If the gov would increase the grant , the property price I think would rise accordingly.... Re: Would Hosue price fall afterJune ? 15Mar 08, 2009 8:46 am Zerosignal Casa2 Steel has dropped 8% so far this year. It's going to drop a lot further. We are net importers of steel though and the price of the Aussie dollar has fallen nearly 30%... Yes, but the price of steel in US dollars has dropped more than 50%. Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: Would Hosue price fall afterJune ? 16Mar 08, 2009 8:49 am batikit sorry i am a bit lost, we are talking about used-house price arent we? I think we're talking about both "used" and "new" houses. They are linked. At the margins, there are people that will flip over to "used" or "new" if the price changes. That is, there is a flow on effect. Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: Would Hosue price fall afterJune ? 17Mar 09, 2009 8:35 am seems sub 500k houses are doing quite well but the houses I've kept an eye on over 650k (which interestingly are going to auction) most passed in at auction.
One got pushed to auction after being forsale for awhile, asking $685k. Sold after it passed for 50k less than what they were asking before going to auction! Whilst the FHOG is a good idea, it's kind of made it harder for FHO's to negotiate a lower price due to the amount of FHO's on the market. That's just my opinion. Re: Would Hosue price fall afterJune ? 18Mar 09, 2009 8:54 am IMO
New Homes The price of new houses will not change much due to low margins and high added value both in trades and embedded labour in materials. Land But what will change is the price of land. This has no added value and prices are wholly influenced by market demand. The average low cost block has about $50K - $100K of profit built in. Where this will lead is anybody's guess, many builders have committed to blocks at old prices so it will take time to filter through. You can see this happening in Martha's Cove where land prices have plumetted. Homes in Established Areas Homes in areas where demand has caused land value to inflate house prices will suffer most. The FHOG is delayng the impact by inflating demand at the low cost end of the market. Ed "ECOECO" At 'EcoEco', we design windows, we design the best windows, we do it for you, so that when you’re happy we are happy. Tel. 1800 326 326 Re: Would Hosue price fall afterJune ? 19Mar 09, 2009 10:02 am i cannot see house prices dropping to much they may stay flat.where I am house prices are still going up due to alot of instructure being build here so people are looking to buy here so there is still a demand for homes prices have gone up 5.5% it seems finished building 40 square home on 5 acres with perry homes.working on the landscaping just finished pool deck with ://forum.homeone.com.au/viewtopic.php?f=31&t=2217 Re: Would Hosue price fall afterJune ? 20Mar 09, 2009 11:34 am New homes, old homes doesn't matter housing prices won't fall dramatically.
Simple supply and demand...Australia needs 180,000 odd houses a year and we build 150,000 odd...shortfall will drive prices up (although they may plateau a bit if unemployment increases) and rents will rise... We are not the US where there are entire suburbs foreclosed and therefore an oversupply of property. While the fundamental unmet demand exists in Australia the price of building inputs are fairly much irrelevant...if people are effectively willing to pay the upper end price for steel for their homes builders will be happy to charge. Steel prices IMO have little impact on domestic construction...more likely major construction and engineering infrastructure will see the reduction. And timber is still expensive. mmm....donuts Homer Simpson 1956- Links: Site Costs Ready Reckoner | H1 Addiction Medical Advice | Château TDL: The Backyard Thank you Splashers. Tomorrow I might check if I can get a few packs of 300x300 in the same tile finish. It may be good to use these could in the shower recesses. I'm not… 4 4671 I've got a challenge here. Background is the builder has cut too deep for the slab and the slab is now below the very substantial retaining wall. It's failed occupancy… 0 18373 |