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Australian residential property sales drying up

MacroBusiness, an Australian economics blog, alerted me to the fact that the Australian property market is seeing transaction volume fall. They quote preliminary sales data for 2012 from the Real Estate Institute of Victoria saying that 69,000 home sales were registered last year. While that is a fall of only 3,000 from the 2011, MacroBusiness notes that it is the lowest home sales level since 1996. The dropoff in home sales is consistent with the drop of home prices nationwide. Steve Keen says prices peaked in June 2010 and are off 4.1 in nominal and 9.8% in real terms since then. The housing-bullish crowd predicts price rises for 2013 though.

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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College. Edward also writes a premium financial newsletter. Sign up here for a free trial.