Australia may be entering softening real estate market
July 11, 2008
Over the past several decades, Australia has looked very favorable on real estate investments, and particularly the operating entities for those investments known as real estate investment trusts. But it appears that the softening real estate market in the United States, is starting to spread. Australia may be entering a softening real estate market
. Several of those Australian real estate investment trusts are now cutting earnings, and their share prices are plummeting. Some long standing and reputable groups have cut as much as 25% off of their earnings forecasts for the year. Hopefully its a momentary pause for what has traditionally been a safehold for many real estate investors.
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This is fantastic news!!!
I can’t wait to see prices fall to affordable levels for young families. I hope a lot of real estate speculators in Australia get severely burnt during this credit crunch crisis.
With food and petrol prices rising it is great to see house prices falling. The mood has definitely changed in the last few months at real estate auctions here in Adelaide.
It is no longer a sellers market–and potential buyers like myself are sitting on the sidelines watching our money in term deposits grow at more than 8%. Haven’t seen such good interest rates since the 1970s. High interest rates are starting to look sexy again!!!!
Jon, do you really think the U.S. has had an impact on the Australian housing market? I would agree that it’s very very possible or probable I should say.