From Herald Sun, 18 April 2011
MELBOURNE'S property bubble is bursting, with $400 a day wiped off the average house price in the past three months.
After peaking at $601,000 late last year, the median price has fallen to $565,000 - down $36,000.
The 6 per cent slump is the biggest quarterly drop in more than two years and one of the biggest the Real Estate Insititute of Victoria has recorded since the height of the global financial crisis.
It has raised hopes for buyers desperately trying to break into the market and will create speculation over whether a crash is coming.
REIV chief executive Enzo Raimondo said that although it was normal for prices to ease at the start of the year, it was clear the market had turned after an astonishing period of runaway growth.
"The honeymoon for sellers is over," he said.
MyView
Steve Keen will be happy, as his prediction finally comes true, after a couple of years of course. Well, he may argue, he can get it much cheaper later, as real property is a long term investment. He got a point there. Other than buying for own use and lock in low rates now, it may not be a good idea to speculate on properties in Australia.
One thing about these experts on bubbles like Steve Keen, Michael Shedlock and James Chanos or even Andy Xie, they are a couple of years EARLY. I suppose you can spot the bubble, but not easy to know when it will burst.
The music will stop soon.
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