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:
•Sydney values (up) 0.8% (s.a.) / (up)1.4% (raw); median price: $512,500
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...