According to The Australian Financial Review, housing prices could fall as much as 20 per cent across Sydney and Melbourne before the downturn is over, according to a revised forecast from ANZ.
A government report earlier this year found house prices had risen 30 percent in the past five years, outstripping income increases by two-to-one, rising to four-to-one in the country's largest city Auckland.
Despite such efforts, housing prices have steadily climbed over the period, with the average medium priced apartment in Seoul increasing from 600 million to 870 million won.
One thing is certain, 600,000“disappeared” homes means that housing prices have a lot farther to fall and that an even larger segment of the banking system is underwater.
House prices would fall, there would be a recession with a big rise in unemployment- and an emergency Budget would be needed to bring in the large cuts in spending that would be needed.
In spite of the prices rises of 2016, nationwide house prices are still 39.4 percent below the peak levels that occurred before the global banking crisis.
The Washington Post analyzed Shiller's data and reported that, over the past 100 years, home prices have only grown at a compound annual rate of 0.3%, adjusted for inflation.
Housing prices across APAC have been growing faster than income since 2010, especially in places like Hong Kong, Australia, New Zealand and India- where families in Mumbai find affordable housing nearly nonexistent.
And soaring house prices don't just create construction jobs; they also support consumer spending, because many homeowners have converted rising house values into cash by refinancing their mortgages.
Credit and house price explosion led to a building boom and eventually to a surplus of unsold homes, which caused U.S. housing prices to peak and begin declining in mid-2006.
New home prices jumped 6.9 per cent in May, the most since they reversed declines in December, SouFun Holdings, the mainland's biggest real estate website owner, said.
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