Wednesday, 4 April 2012

Please Explain? An Inconvenient Truth?

Something is giving off some aroma looking at the latest house prices in Sydney (Hobart is just bizarre).

Macrobusiness relays RP Data's latest bollocks index (no offence meant Leith):

Sydney house prices at a median of $525,000.


30 months ago they were $600,000 (October 2009).

Median cost of a Sydney house tops $600,000
A TYPICAL Sydney house now costs well in excess of $600,000 after surging at the rate of $5000 to $6000 a month all year.

The latest RP Data-Rismark property index shows prices in Sydney, Melbourne and Canberra continuing to climb apparently unaffected by a slowdown hitting other state capitals.

What am I missing?

RP Data November 2009 release:
Capital city dwelling values – first ten months of 2009
•Sydney values (up) 9.9% to $553,583

RP Data November 2010 release:
Change in city dwelling values: 3 months to October
•Sydney values (up) 0.8% (s.a.) / (up)1.4% (raw); median price: $512,500
Later in the tables: (Sydney growth) Year to date 6.1%

How can house prices drop from $553K to $512K in 12 months to November 2010 and one claim 6.1% growth?

Thats a 7.4% fall.

And $600K to $525K in 31 months? Thats a 5% drop year-on-year and a total of 12.5% off from peak not allowing for inflation and then its ugly.

Outlook? Well, if history is anything to go by...

Hmmmm, look, there is a light at the end of the tunnel for property investors...

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