“Thousands of would-be homebuyers have committed themselves to Prosper’s Buyers Strike and are now standing out of the market,” Prosper Australia campaigner David Collyer said today.
“Our call for a buyers strike has gone viral over the internet – spread far and wide by young disaffected adults locked out of home ownership.
“Do not underestimate the depth of feeling around this issue. Being locked out of home ownership denies them full citizenship. They are deeply frustrated and very angry.
The response has been fast and furious. They say and I paraphrase:
“We have done the sums. The gap between prices and earnings is too big. Committing to a home at current prices equals a lifetime of debt slavery. We refuse. We see prices falling soon, just as they have elsewhere in the world. We will rent a little longer. We will save a larger deposit.
“The entire real estate edifice relies on first home buyers overpaying for poor quality property. Sellers can cash out and gear up for a superior home. The process works well until buyers can no longer afford the first step. That is the situation right now.
Evidence of the groundswell for the Buyers Strike can be found at GetUp*, where in a mere 36 hours the issue has catapulted past many other worthy and long-standing campaign ideas.
The IMF, OECD and many economic analysts have warned Australia is in a property bubble. These invariably end in widespread wealth destruction, particularly for those carrying large mortgages. In the USA, one in five properties with mortgages are ‘underwater’ – they owe more than the property is currently worth.
According to RP Data, there are 900 auctions scheduled for Melbourne this weekend. If fifty percent fail to sell, we will regard the Buyers Strike campaign a success.
“We are convinced The Great Australian Land Bubble has reached its climax and is set to deflate. Prosper is pushing on an open door,” Collyer concluded.