A lobby group is claiming the Australian real estate bubble has finally burst, citing falling house prices and demand as two key signs.
Prosper Australia campaign manager David Collyer has forecast the end of “towering prices” and the beginning of the “grand unwinding”.
Collyer said his claims were backed up by RP Data research, which shows house prices have fallen since April last year; as well as the latest housing finance figures from the Australian Bureau of Statistics, which show a large drop in first home buyer commitments.
“Falling values and falling volumes over an extended time are decisive indicators of a new bearish trend,” he said.
Prosper Australia has led a Home Buyers Strike encouraging people to sign a petition that they will not bid at an auction or enter into an agreement to purchase a house.
“Throughout the Buyers Strike, Prosper has characterised the bust as ‘imminent’. We now say the inflection point has arrived: Australian prices have passed top dead centre,” Collyer said.
