Ominous signs the property market is running out of steam - and fast

looks positive at first blush but a deeper delve shows signs are starting to emerge that this market is running out of steam - and fast.

Cashed-up investors or even first home buyers could opportunistically seize bargains but most people will take Prime Minister Scott Morrison’s advice and financially hibernate. Household balance sheets were highly leveraged going into this crisis and now feels like a good time to keep their powder dry.The good news is that the federal government and the banks have come to the party.

Additionally those small to medium sized company owners who are typical residential property investors will be looking for liquidity. They will also be feeling the pinch if their rental tenants are unable to meet monthly payments. And after six months they will need to start paying interest again. Bank largesse won’t continue indefinitely.

"Hopefully, the federal government’s wage subsidy program will keep the rise in unemployment to below 10 per cent and this, combined with various income support measures and bank mortgage payment holidays, will serve to keep forced property selling to a minimum and price declines modest at around 5 per cent," Oliver says.

Who cares.

Only fall 20% ? These inflated debt driven prices need to fall 60% to become normal. Get a grip.

Doesn’t worry me at all.

Why would people buy property in such uncertain times?

good news

Great

they would crash The bigger the better

“The good news is that the federal government and the banks have come to the party. Borrowers affected by the pandemic can put mortgage payments on ice for six months”. Why is this good news? Using public money to prop up an unproductive debt bubble is not good news.

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Housing market 'not immune' to coronavirus crisis as cracks show in Sydney and Melbourne marketsSydney and Melbourne house prices increased in March but there are signs of a slowdown following tough restrictions on how real estate agents can sell properties during the coronavirus pandemic. JennieDuke Pretty hard not to be immune when millions lose their jobs Scutty JennieDuke Lol JennieDuke Housing bubble*
Source: smh - 🏆 6. / 80 Read more »

Australian stock market jumps 3.5 per cent as investors pin hopes on major banksAustralia's share market has closed up almost 4 per cent, driven by large gains by energy and financial stocks. 9News Look at the oil companies and real estate champions buoying us up. Why do we demonise the guys who lovingly lift us up? Smart people who work hard!
Source: 9NewsAUS - 🏆 10. / 72 Read more »