Housing prices in Australia are now 12 % over priced, states a top investment bank which has raised the potential for policy leaders to launch stronger measures to help make property prices fairer. Barclay’s chief economist for Australia, Kieran Davies, analyzed a variety of factors including the growing gap between family income and mortgage rates, as well as the ageing population and the working age of the population, to develop a model that found property prices were above reasonable value. Australia experienced 15 % annualized growth in May and June, with prices up 10 % since the start of the year. This brings house and apartment values to just about 50 % more than pre-global financial meltdown prices. Around the world, housing prices are …show more content…
If it were not so difficult to get approval for a new loan, there would be a boom that occurred in the housing industry as we speak. New building would be good news not only for people who are looking for housing, but also for real estate investors. In general, buyers agents are eager for more buildings. Although the prices will drive down, it will also increase demand and more people would be looking to buy new homes. 2. Less People Living In Each Home: Before, a single house would be the home of a number of people. Truth be told, multi-generational housing situations used to be entirely normal. These days, though, more and more people live on their own. Divorces have increased, and that means fewer families live together in the same dwelling. All this means that more homes are inhabited by fewer people - and that adds to the overall deficit. 3. Impact of foreign investors Asian bidders have a kind of monopoly in the field of real estate purchases by outbidding their Australian colleagues on most occasions. Though, the locals are complaining about their situation, property buyers agents enjoying the boom in the property market. Some smart guys are even taking the pain to travel all the way to China with the aim to attract more wealthy Chinese