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Wednesday, August 5, 2009

ABS confirms house price resilience

The ABS data on house prices released today shows the resilience of housing as well as the impact of the combined actions of the government and the Reserve Bank of Australia (RBA) in their response to the global financial crisis.

The latest figures show that house prices for established homes increased by 4.2 per cent in the June quarter 2009 and over the past 12 months, decreased by a modest 1.4 per cent. Since the peak in March 2008, prices have dropped only 2.2 per cent.
REIA President, Mr David Airey said, “The ABS figures fly in the face of the prophesies of the doomsayers’such as Professor Steve Keen from the University of Western Sydney. This data confirms the stance taken by REIA; that since late last year, there has been great opportunity for home buyers and investors to enter
the housing market.”

“Will Professor Keen now take the promised walk to the top of Mount Kosciuszko where the quiet and clear mountain air provides an opportunity to contemplate the real estate market?” *
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*Professor Keen forecast last November that house prices
would fall 40% in Australia. A view not held by Mr. Rory
Robertson of the Macquarie Bank. The difference in opinion
led to a bet with the loser to walk from Canberra to the top
of Mount Kosciuszko.

By Real Estate Institute of Australia 5/8/09