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Australians at war over housing prices

clock icon December 12, 2017

There’s no denying the housing boom has been beneficial for homeowners, but not everyone wants to see the prices continue to rise.

The results of a recent ME Bank poll revealed a quarter of Australian homeowners are happy to see the prices fall.

ME Bank general manager of home loans Patrick Nolan said, “Traditionally Australians fall into two camps when it comes to property prices: owners, who want them to rise, and non-owners, who want them to fall.”

“But with high prices disrupting the dream of homeownership and the benefits that brings, views are changing.”

Not surprising, 39 per cent of homeowners and 47 per cent of property investors said they were reliant on property prices rising in the future.

However, the total results show a drop in pricing would help the masses. Overall, 28 per cent of people surveyed said they would benefit from housing prices continuing to rise, opposed to 48 per cent of people who said they would have something to gain from a drop in prices.

What was surprising is that not all homeowners think the rising cost of a home is fair, with 20 per cent of people with an investment property and 24 per cent of people who already own a home indicating they would like to see the prices fall.

When asked why, 97 per cent of the homeowners said it was “to help address the housing affordability issue”.

“That property owners were willing to see asset values fall is a sure sign house prices had reached heights many think are unfair,” said Nolan.

Those hoping for a dip in prices might be in luck. Data from the Australian Securities Exchange and CoreLogic “show that home prices nationally have climbed an average 5.2 per cent — halving from their annual growth rate of 10.4 per cent in May,” reports Adelaide Now.

Reasons for the shift include crackdowns on risky mortgages and investment lending and rising supply.

CoreLogic’s head of research for Australia, Cameron Kusher, said, “Slower growth or falls in the two largest housing markets in the country is likely to slow the headline (national) rate of growth further over the next 12 months.”

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