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Steve keen's been ringing the tocsin for the last few years on Australia's RE ponzi efforts. Turns out there was plenty of land down under . . . .
AFTER more than 18 months on the market, the luxury Riverview On March apartments finally went under the hammer yesterday and about 140 people came to watch as they sold for a song.
Valued at $650,000 to $700,000-plus each, four of the six units sold. They fetched $510,000, $320,000, $339,000 and $300,000.
Auctioneer Jason Andrew was made to earn his keep in cajoling every last dollar out of the buyers, but bidding was desultory for the two penthouses, which were eventually passed in because they did not meet the reserve price.
Developer Ron Blyth admitted he felt hard done by, with three of the four sold units going for less than half the building cost.
Even on the highest-selling apartment, Mr Blyth lost about $200,000 or a total of about $1.2 million for the combined sales.
It's less than encouraging, he said. The situation probably is that real estate isn't in vogue at the moment.
http://www.frasercoastchronicle.com....ces-riverview/
BUYERS are deserting the housing market at a pace that threatens a slump in housing prices and a risk to the economic outlook.
The number of new housing loans approved by the banks dropped 5.6 per cent to a 10-year low in February, after a similarly sharp drop in the previous month.
The Queensland floods were not to blame, because the number of new housing loans fell in all states. Among the biggest falls was a 10.1 per cent drop in NSW.
The buyer retreat comes as the stock of unsold houses mounts. Figures compiled by property analysts SQM Research show there are now 356,600 properties on the market, which is almost 50 per cent more than a year ago.
"It is clear now that the sudden drop in finance approvals in the new year is not to do with the flooding, but is rather due to the Reserve Bank's interest rate rise in November, which was the straw that broke the camel's back," SQM chief executive Louis Christopher said.
http://www.theaustralian.com.au/nati...-1226034940341
Keen's Charts:
Since 1987, banks have moved more and more into real estate loans
Mortgages account for a record 57 percent of banks' loan books
(what's TBTF in Australian?)
They account for a record 37% of bank assets
Compared to America, real estate loans are a higher share of bank assets, and they increased in significance more quickly
(that's what a good teacher can do ... or is Goldman in the woodpile)
THE BUST BEGINS: Impaired assets have surged to 25% of Tier 1 capital, even while home prices increase
Real estate loans are worth 700% of Tier 1 capital. An increase in non-performing loans would cause grave damage
DEBT PRESSURE: Australians already pay 50% more than the U.S. in mortgage interest
Mortgage debt exploded to almost 90% of GDP
The latest bubble started with the highest debt level and has lasted longest
AFTER more than 18 months on the market, the luxury Riverview On March apartments finally went under the hammer yesterday and about 140 people came to watch as they sold for a song.
Valued at $650,000 to $700,000-plus each, four of the six units sold. They fetched $510,000, $320,000, $339,000 and $300,000.
Auctioneer Jason Andrew was made to earn his keep in cajoling every last dollar out of the buyers, but bidding was desultory for the two penthouses, which were eventually passed in because they did not meet the reserve price.
Developer Ron Blyth admitted he felt hard done by, with three of the four sold units going for less than half the building cost.
Even on the highest-selling apartment, Mr Blyth lost about $200,000 or a total of about $1.2 million for the combined sales.
It's less than encouraging, he said. The situation probably is that real estate isn't in vogue at the moment.
http://www.frasercoastchronicle.com....ces-riverview/
BUYERS are deserting the housing market at a pace that threatens a slump in housing prices and a risk to the economic outlook.
The number of new housing loans approved by the banks dropped 5.6 per cent to a 10-year low in February, after a similarly sharp drop in the previous month.
The Queensland floods were not to blame, because the number of new housing loans fell in all states. Among the biggest falls was a 10.1 per cent drop in NSW.
The buyer retreat comes as the stock of unsold houses mounts. Figures compiled by property analysts SQM Research show there are now 356,600 properties on the market, which is almost 50 per cent more than a year ago.
"It is clear now that the sudden drop in finance approvals in the new year is not to do with the flooding, but is rather due to the Reserve Bank's interest rate rise in November, which was the straw that broke the camel's back," SQM chief executive Louis Christopher said.
http://www.theaustralian.com.au/nati...-1226034940341
Keen's Charts:
Since 1987, banks have moved more and more into real estate loans
Mortgages account for a record 57 percent of banks' loan books
(what's TBTF in Australian?)
They account for a record 37% of bank assets
Compared to America, real estate loans are a higher share of bank assets, and they increased in significance more quickly
(that's what a good teacher can do ... or is Goldman in the woodpile)
THE BUST BEGINS: Impaired assets have surged to 25% of Tier 1 capital, even while home prices increase
Real estate loans are worth 700% of Tier 1 capital. An increase in non-performing loans would cause grave damage
DEBT PRESSURE: Australians already pay 50% more than the U.S. in mortgage interest
Mortgage debt exploded to almost 90% of GDP
The latest bubble started with the highest debt level and has lasted longest
Only the 1920s bubble is comparable in debt growth
The rise in house prices has been unprecedented
Banks have soared like never before -- and have a long ways to fall
According to the Economist, Australia has the most overpriced housing market anywhere
We need a new wave theory. Elliot is clearly in over his head here. Suggested title - the 100 year or so Wave-Goodbye Theory . . . .
We need a new wave theory. Elliot is clearly in over his head here. Suggested title - the 100 year or so Wave-Goodbye Theory . . . .
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