Even Rate Cuts Won’t Help Home Prices...

[@williamcrossan9333]

The damage is indeed done, and it appears permanent. Anyone starting out today, without inheritance wealth, will have a much lower standard of living.

[@addictiveaussie]

The biggest property bubble in the world, in modern history - PERIOD. The fact that there is so much complacency and talk across the board of higher prices and, better get in now, or miss out, only reinforces the obvious.

[@cind_errs]

It’s a ponzi. As Matt Barrie says ‘it’s the Ponzi that everyone is in on - public, politicians, overseas, realestate, lawyers, lobbyists’.

[@andyirons7162]

Don't worry at all for the crash will be epic....shiller index, buffet indicator, real wages vs inflation are AT ALL TIME HIGHS...never in Western/ US history have asset values been more overvalued and the working person poorer. Worse than 1929, 2000 and 2008...just think about that.

[@MrTonifumi]

Might feel bad......but the huge pools of money are out there and they will buy property if interest rates go down.

[@addictiveaussie]

@ Interest rates aren't going down, They're going UP. You're not paying attention to what's going on. Governments are flat chat broke and the second largest buyer of US paper(debt) has stopped buying it. Hold onto your hat, especially if you have sizeable mortgage, because it's going to be a wild ride over the next few years

[@test143000]

I heard this in 2008, since then property prices grew 150%-200%.

[@iamjacobnz]

People are much pouorer now due to the wage suppression effect of importing half of the third world and the increase in rents as well as the massive uncontrolled covid stimulus inflation... Even if rates were to go back down to pre-covid levels housing at pre-covid levels would still be less affordable given the decline in purchasing power.

[@scubatuna]

yeah that's what inflation means....you're a real genius

[@AshLagondar]

Incorrect, inflation is the increase of the money supply.

[@quoclien3343]

depending on what industry you purchased goods, dont forget the trumps tarriffs coming back pass on consumers globally, then inflation and aud...wont be getting much with our money, let alone purchase a roof over the head

[@addictiveaussie]

@@AshLagondar That is the accepted definition, however it isn't the cause. We had rampant increases in money supply for two decades without inflation. Inflation is caused by supply chain issues, as what occurred during the 70's and what occurred during COVID

[@iamjacobnz]

Australian production that has declined to due to continuous looting and offshoring by the fire sector meanwhile the population of working age adults has increased by millions of people decreasing the purchasing power. You don't know anything about inflation.

[@sebastianfinocchiaro870]

One million immigrants in 18 months, and very few houses built, I don’t know how the country is going to get out of this mess.

[@dennis6733t]

Martyn keeps us up to date on the top news in the industry.Cheers Mr. North !

[@WalkTheWorldDFA]

Thanks, we aim to....

[@UNBE4R4BLE]

Lets not forget the mandatory inflated home insurance and excessive council rates that create a secondary mini mortgage

[@Goodcomment7856]

Rates would need to go back to zero for Sydney home prices to be affordable at current prices. If you have money for a deposit that is.

[@sirbeesknees]

If you require a 10% deposit for a 30yr loan, the house is not affordable. Affordable means buy outright after years of saving.

[@test143000]

It doesn't matter if they are affordable or not. What matters - if somebody pays this price, this is a real market price, whatever you think about affordability.

[@kasparhartley266]

If interest rates went to zero, prices would go way higher actually. Exactly what happened during covid

[@sirbeesknees]

Reading the comment section makes me realise how clueless people are.

[@williamcrossan9333]

Be careful Martin. History has not been kind to those predicting house price falls. Indeed, don't be shocked if house prices run yet again. I'm sick of it myself, let me tell you.

[@mylimomelbourne4757]

Oil prices coming down will, and why are they coming down, drill drill drill that why , there is a direct correlation with oil prices and electricity prices, energy prices drive inflation driving interest rates…

[@MarkMark-ji6ts]

hahaha Brent crude on bloomberg at 78.00

[@mylimomelbourne4757]

Ha , yes , doomberg or Bloomberg

[@trg9765]

Rate cuts will only fuel house prices In 1 direction UP

[@iamjacobnz]

Pretty sure the house prices are massively down you know in comparison to commodity prices and prices of real goods and services of course real wages they're also down significantly...

[@fatgim]

I used to be on this side of the fence. Afraid to do anything because the sky is falling and miss out on asset growth.

[@Robert-xk9qq]

Realistically the bubble has to burst, house prices need to come down by 30-40%, the rich and the selfish might not like it, but if it doesn't happen,our generation of our youth will never have one,and our generation of children being born will disappear

[@dudemanismadcool]

That's what they want bud.

[@ralphsimpson4593]

The Govt will just keep importing cashed up immigrants

[@Boobook663]

@@dudemanismadcool Exactly

[@cind_errs]

I think the plan is to have it slow to catch up with wage growth. It’s unrealistic as wage growth was stagnant for more than a decade. It’s why NSW can’t retain staff in NSW as other states are paying more in certain professions. NSW will not only have no grandchildren but also too many apartments, paying $ on tolls everywhere and no experienced health professionals.

[@dudemanismadcool]

@@cind_errs we are on the precipice of a vast depopulation event. Deagel report. It's why the corporations the world over are shovelling out straight garbage right now and CEOs are stepping down en masse. It's why no country seemingly cares about incurring mind boggling amounts of debt. It's all going to be meaningless by the time this decade is through. God speed my friends.

[@downtoearth1950]

My horse was likely to win the Melbourne Cup too!

[@Noddy2750]

Maybe if the LNP/IPA had built more houses in their 10 years in government We wouldn't be having this problem But hay its All Labor's Fault who have been in government for nearly 3 years !

[@jayssonmoggalicious7469]

How can inflation be going down when the price of everything is going up. What accounting magic is being used to get inflation down with costs going up?

[@InfinityIsland2203]

No magic, just blatant lies.

[@TheTestride]

for god sake google it or listen to Martin. The rate of inflation is going down which means prices are rising slower BUT still going UP.

[@williamcrossan9333]

Essentially, inflation is used to decay wages. The government and elite want the masses working harder for less. And it's working very well indeed.

[@MrTonifumi]

Rate cuts will bring back investors into the housing market. Stubbornly high Inflation and cashed up rich investors with be buying up good rentable properties as returns fall from bonds and the sharemarket. 'Average' savings are increasing (the median is not) suggesting their are vast pools of cash on the sidelines ready to buy in the coming years. If you think house prices are about to fall, you are fooling yourself and others.

[@test143000]

This has been Mr North job for the last 10+ years - give a false hope to people, eventually leading them to much worse financial situation when they get older and still renting.

[@jonathanchant6655]

Anyone can see that rate drops are not going to go down much and peoples servicibilty for new loans will not allow them to borrow the huge amount they need to do now

[@000pete9]

8 years ago, Low interest rates started the housing problem, people can't afford to borrow , did borrowed big, people were encouraged to buy by the liberal government! At the same time created big demands of housing by first time buyers and investors plus big immigrations also made the situation worse, government's high spending and green energy policies don't help, only added to higher inflation = higher interest rates. Currently the interest rates aren't high, but extremely high prices of housings are the problems. What's the solution?. Maybe negative gearing to be reduced?.reduce immigration, get rid of green energy , use coal, oil, gas..investment of more manufacturing industries , investment in more high technology industries by O/S. Investors. In the 80s interest rates went up to 17% ! created hardship but because housings were much cheaper thus could be managed. Now we have high housing costs, many time the annual earnings, people started borrowing big time and if any movement on interest rates , which always move, will cause financial, political and social pain.!.

[@claire6224]

These home prices are overprice. Trump is right Taxes and interest rate need to drop including energy prices chocking people and businesses owners. The government and the bank went to far this time. Union Strike, bullying for a raise won’t help them. The government waste, too many red tapes, tarrif, spending and new taxes are ruining and slowing down businesses the economy they are the problem.

[@test143000]

Are you listening what USA oligarchs say to make a decision when to purchase a property in Australia?

[@FlatTire]

I don’t understand current realestate prices … Where do all those people get their money from? If it’s mortgage, how can they afford? What jobs are they doing? What kind of income do they have? Im on 100k, wife on 50k and we hardly keep afloat… How much is decent income nowadays???

[@LilyWhiteAkAConspiracyRealist]

Inflation is still too high, costs are massively overinflated and will not help lower interest rates. Ppl will continue to spend and cause inflation spikes. Think if NZ and their yo yo rates situation 🤷‍♀️

[@asifulzead]

A rate cut would benefit Melbourne the most. Perth prices seems to be frozen as people are not willing to pay more.

[@adriansmith7604]

Labor totally stuffed Australia

[@geoffvalero3516]

sadly not accurate..Labour and Coalition both stuffed Straya

[@byronwilliams4889]

it was the liberals who stuffed this country mate. they started this crap under howard and costello.

[@test143000]

To be accurate the Howard Government made a foundation for this, others just followed it. If you are an average person on an average income, then follow a trend and buy a house, don't go against a trend if you are not in this business.

[@PLAYER2035]

I’m currently shopping around the $2M mark in Melbourne and can tell you the vendors are absolutely desperate. We turned down a deal in November and it still hasn’t sold. The rats are fleeing the ship, the smart ones anyway

[@andrewfraser5656]

I would love to see just one video from DFA that gets directly to the point of the title of the video. Instead of speaking in rhyme. The name of the channel tries to claim that we’re just here to give you the data and that the story we are trying to tell you, is put together by connecting the dots. By the end of the video, you are still left with no firm answers on anything. But you are left with a spaghetti of data for you to interpret however you see fit…. Perhaps someone needs to be on the spectrum, in order to better relate to the way Martin North speaks in riddles and rhyme?

[@mrsmith1097]

lol 0.65% of rate cuts in 2025 is nothing, it will bring the current cash rate of 4.35 down to 3.7%…. during the last housing boom we had 0.25% rates.

[@Michael_Lak]

Won't help prices do what? The lower the better.

[@andrewbroome7404]

Rate raises and immigration cuts would tho

[@6219ll-dq9ij]

Will never happen .. Sorry

[@andrewbroome7404]

@6219ll-dq9ij one can dream

[@test143000]

RBA and Australian Government don't have mandate to crash property prices, so don't hold your breath.

[@andrewbroome7404]

@@test143000 no just high income taxes and zero capital gains on property

[@test143000]

@ Income tax in Australia one of the highest in the world, so it cannot be increased. Actually the top bracket will be increased, effectively lowering taxes. Even removing capital gains tax concession will not make property speculation unprofitable, it is still profitable.

[@ivica351]

Any rate cuts will destroy the property market No rate cuts for atleast 18 months atleast

[@redsed1565]

Next housing boon in March!

[@cyruschadrezzar]

Tableau op.33 d-moll, Paris, 13.10.2024

[@Chris.Davies]

Rate cuts INCREASE house prices. LOL.

[@Eric-kn4yn]

No persons land ok.

[@Eric-kn4yn]

Age pension in india $40 a week.

[@6219ll-dq9ij]

It will be that here soon enough..

[@InfinityIsland2203]

​@6219ll-dq9ij it's less than that here inflation adjusted

[@test143000]

who cares?

[@Noddy2750]

When me and my X brought a house in late 70s the interest rate was 17.5% You lot whing about 4% Oooh my goodness!

[@yeahnah773]

You’re confused. Asset prices were clearly lower. 1% on 10000 and 10% 100 are clearly different. Furthermore, since then the rates have come down causing the asset price to rise. And government intervention in housing has only got worse You lived in the easiest time for housing ever

[@CA999]

Different conditions, policies and leadership. It's not a useful comparison.

[@rockcrawler31]

Oh look, a boomer trotting out this old trope again. You bought that house when property prices were 3-4 times the average annual wage. Now that house is 12-18 times the average wage which means repayments at 6 percent are still more per month when compared to income than yours were at 17 percent. The difference is that your repayments eventually dropped along with rates whereas the higher capital outlay of todays repayments mean the repayments will be that high for the life of the loan. But hey...feel free to tell us again how hard you had back in the "olden days". Seems all you boomers are not only getting dementia these days but you also failed basic mathematics.

[@quoclien3343]

you make it sound like 17% going for 24-36months..

[@yeahnah773]

@@Noddy2750 you’re the same person who was saying Australians spent billions over Christmas, guess who did the spending….. old rich people who hate their children and grandchildren by voting to send them into poverty via housing policy debt