Canterbury property prices going crazy!

I read in this months SmartInvestor Magazine, that Canterbury is set to be the second best performer for investment properties in the next year or so. SO, get set for HIGHER property prices.

AJ

Thought I'd bump this topic guys. After the GFC, how are the property prices in Canterbury going? Have they held up? The realestate.com.au market trends suggest the prices have bounced back, but are not much higher than what they were a year ago:

http://www.realestate.com.au/cgi-bin/rsearch?a=sp&s=vic&u=canterbury

Thoughts? Can any agents out there shed some light on this one?

It has always been a Blue-chip suburb in Melbourne's East so not surprised that prices quickly bounced back. I think being a small-ish suburb and so popular it will have relatively low turnover, which might keep prices stable over time.
But I'm no Agent, just my $0.02 :)

It would be interesting to see if property prices in Melbourne ever will REALLY tank like in places in USA and EU. Touch wood, I hope it doesn't happen, but I wonder what economic factors would case it to happen, considering what we just went through with the GFC.

AJ - I personally dont think Melbourne property prices will ever tank like they did in the US. Our banking system and prudential regulation would never allows us to get to the state that the US did with subprime. The only thing that cannot be quantified is the level of interest rate rises and whether the new mortgages acquired as a result of the firsrt home owner grants (and the subsequent flown on two second and third home buyers) will be adequately serviced. Unemployment seems to be relatively stable, so lets hope all the people who acquired new homes in the last 12 months were diligent enough to ensure they could withstand several interest rate rises!

Not sure if you have seen it, but this power point presentation is hilarious! http://blog.smarthippo.com/2008/03/05/a-subprime-primer-a-humorous-look-at-how-things-went-so-terribly-wrong/

You should write for the economists lala81 - you clearly have some knowledge of the mortgage markets :) It's a great thing for future generations though, a lesson well learned.

Great link as well hehehe.

AJ

AJ - haha write for the economist. That's a new one! A banker will have to do - don't judge me :) But yes, a lesson very well learned.