Essential property news this week 19 Nov 2018
Despite not such great news from over the weekend with clearance rates, it was a welcome change to see a headline like the one we found this morning.
The hint that the housing market is heading back to normal
Whilst the article did not necessarily contain any new information that had us jumping for joy, it was good to read a fresh outlook. A lot of what happening right now is all about perspective, and the media is not really making it much easier.
The optimism did not last long, as this is what was to be found right underneath it!
Reserve Bank finds new risk in housing market
This article calls out the new elephant in the room - how difficult it has been for developers to start new projects, and a flow-on effect in the construction industry. The RBA is possibly worried - could unemployment in this industry break the economy? It remains to be seen what the RBA will do.
Disagreement and confusion in the media has been a defining theme in this downturn, with a number of factors being blamed and even dissent amongst experts: Industry at loggerheads over cause of housing slump
It’s not an understatement to say that the media is sensationalising headlines. That’s not to say that a lot of people in the industry disagree with the impact of the current situation. It’s just that talk of a crash up to 50% as discussed in some circles is still somewhat unlikely.
This article sums it all up perfectly. A simple, no-nonsense piece of reading that de-bunks the rants of the doomsayers.
Australian property market crash is no certainty
A couple of favourite and reality-checking quotes from the article include (this one is in reference to US expert Harry Dent who is predicting losses up to 50% –he’s incorrectly predicted about 3 Aussie property market busts)
Those sorts of falls will need to keep running for about five years for his prediction to come true or prices will need to drop even faster than the current rate.
And the below, in reference to the fact that prices can and do fall slowly or stay static before increasing again.
It would be unwise in the extreme to discount that possibility just because a swag of negative predictions are swamping the headlines.
Have a great week everyone!