Even More Depressing News for the Real Estate Industry
Yesterday the Courier Mail reported that first home buyers “have fled Queensland’s housing market”. That’s a rather exciting way of describing the simple fact that many first home buyers now feel that they can no longer afford to buy a home.
Of course the first home buyer is basically the person who drives the housing market because people buying in at the low end of the market enable others to sell and move up the chain. So when first home buyers stop buying there are real problems and those problems are even going to be felt here in Hervey Bay.
Back on November 5 the Gossip reported that even the head of Aussie Homeloans was frankly telling people that the boom in the real estate market was over and prices were on the way down (You can read that story here) so eventually home prices will come back into a range that first home buyers will feel they can afford but that isn’t going to happen for a while.
The Courier Mail is running a poll as I write this late on Monday afternoon and more than 82% of the 594 people who expressed an opinion now feel that owning your on home in Australia is becoming unaffordable.
Interesting times lay ahead.
