Australian policy makers say the housing market has been reined in, but in fact house prices are rising hopelessly, with even collapsing wooden houses and houses far away from Sydney selling for A $100 nights.
A shortage of property for sale in and out of cities, as well as a surge in Australian house prices, is continuing to push prices up. Even at the end of last year, banks tightened lending policies. A real estate agent, who has worked for 27 years, said many buyers even went to buy houses that they had never seen because they feared it would be their last chance to buy a house.
Now the fire has been fully opened, the agent has never seen so few properties listed this spring, buyers can be fully selected, and this year's shortage can only continue to rise house prices
House prices rose for three years and were suspended for some time after banks tightened home loans at the end of last year. Now the real estate market is taking off again because of the growing population with fewer and fewer properties, giving the new RBA president Philip Lowe a headache
Prices in Sydney have risen by 14% by September, compared with 9% across the country, in total violation of last year's forecast by property trading giant Domain that the surge was over at the end of last year. Prices in Sydney have doubled since 2008.
Across Sydney, only 20, 000 homes are on the market, less than half the number five years ago, and the high transaction costs of selling houses and rebuying them, such as rising intermediary fees and goverment taxes, have made fewer and fewer homeowners willing to move
At an auction held last week by auctioneer Baldwin, there were 134 auctions, two of them even 18 kilometers away for 926,000, 19% higher than the house's valuation, for buyers. They don't care about the house itself, they value the opportunity to return the house to build a new house. Some buyers even say that if we don't buy it now, we won't be able to afford it in the future.
