Wednesday, May 04, 2005

Builder Cites Rate Increases In Slump

A predictable debate is rising in Australia, where the central bank is ahead of its US counterpart by several months. "Building approvals slumped 6.8 per cent in March, with approvals for units and other dwellings down 25 per cent. However, private home approvals climbed 0.3 per cent."

"A sharp fall in building approvals is due solely to the Australian Reserve Bank's decision to lift interest rates in March, Master Builders Australia said yesterday."

"MBA chief executive Wilhem Harnisch said the latest building approval figures were more evidence for the Reserve Bank to leave rates on hold this month."

10 Comments:

At 8:27 AM, Blogger burbanman said...

I'm so tired of whining builders that just want to prolong the buying frenzy long enough to dump their inventory at overinflated prices.

New development in my area (Ottawa) has gone into full scale clampdown mode. New homes have turned rental and the sales offices are ghost towns.

 
At 8:37 AM, Blogger John Law said...

ben, hit this one out of the park!

Investors fed up with stocks are scooping up property

http://seattletimes.nwsource.com/html/homerealestate/2002257842_homeflipping01.html

 
At 8:40 AM, Anonymous Anonymous said...

Learn Real Estate. How Hard Can it Be?

http://www.dailyheights.com/archives/2005/05/learn_real_esta.html

 
At 8:47 AM, Anonymous spectator said...

Regarding that Seattle article (about Florida via Chicago):

I wish the avg Joe condo-buyer would step back and take a look at what they are doing. Speculators are stockpiling properties to offload at the first sign of a sucker. This was similar to what happened in the stock market in the late '90s: insiders would load up on cheap IPO shares and distribute them to retail fools.

These property speculators lose if retail buyers step away. Because these properties were never intended to be held or lived in, the speculators will have a very short leash on them. They will flood the market once the market turns down.

But the avg Joe doesn't realize that. He/she thinks the market is in runaway mode so he bids, outbids and bids some more. He/she doesn't understand that by stepping away, prices would fall of their own weight and speculators would be forced to reduce prices to get out of the market.

I hope avg Joe's start reading some of these articles about rampant property speculation. Maybe, just maybe, they will begin to understand that they are the suckers in this game. They have the ability to stop it by not opening their wallet.

 
At 8:48 AM, Anonymous Anonymous said...

NEWS FLASH!!!!!!!!!!!!!!

Homes: U.K. went cold; U.S. could too
U.S. homeowners can learn a lot from the housing slowdown in the U.K. market.

http://money.cnn.com/2005/05/03/real_estate/investment_prop/lessons/index.htm

 
At 8:52 AM, Blogger John Law said...

it's amazing how spec a condo can be. it's usually a piece(share) of a nice large building. everything is very orderly, no messy ownership situations. it's like buying a share in a mutual fund. I'm sure you don't have to worry about the foundation or the roof. it's amazing.

are condos really that good?

 
At 8:55 AM, Blogger John Law said...

UK and Aus both look like they're ahead of us. scary.

 
At 9:05 AM, Blogger desi dude said...

Just a qn for experts

what is a condo conversion?

what is diff an apartment and a condo?

I know that condos are owned by individuals and association maintains the property. in an apt , one owner owns the complete set of units.

correct me if I'm wrnong

 
At 9:35 AM, Blogger deb said...

Have to comment on the comparisons of the Aust/UK booms to the US.

The coasts of the US are every bit as bad as what has gone on in the UK/Aust. Everyone loves to point to our national median to say that we can't possibly have a problem, look at how mild our increases are compared to theirs. Prices in my area have TRIPLED in less than 10 years. The middle of our country has kept the statistics from looking as horrifying as they are.

 
At 9:56 AM, Blogger burbanman said...

desi dude: "condo" is short for condominium and is an ownership arrangement. An apartment is the description of the structure vs. free standing home, duplex, rowhome (townhouse).

Typically, townhomes, apartments are condo arrangements. However, some townhomes can be "freehold"...which means you own the land, the roof, the siding and have to deal with maintenance/replacement.

Deb: I agree with your suggestion that the media downplays RE gains. I sold a home in Manassas, Va in 1995 for 167k. Today, I found comparables listed in the high 500s. Roughly a 350% gain. (I should have kept it huh?)

 

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