asprilla

"Australian Property Alliance (APA) managing director Paul Bitdorf said the Perth property market was starting to show signs of recovery, thanks to increased activity within the first-home buyer sector."


http://www.news.com.au/perthnow/stor...9-2761,00.html


Oh how I love Australian "news" stories.

BATS666

i think they call this a "Fool's Paradise"!

the troubadour

Don't you just.But it does appear to have the desired outcome a lot of the time.
Time will tell if they can pull this one off being that the Perth property market is so way over valued and poor value for money.

asprilla

STOP THE PRESS - Melbourne's houses are now more affordable !

"The improvement in housing affordability means those on a more modest income can now contemplate a home of their own," the HIA's chief executive Chris Lamont said.

http://www.news.com.au/heraldsun/sto...1-2862,00.html

northernlights

A dead cat bounce no doubt...

isgraham

AKA sucker rally

Billabong

It is funny :-) but how do you think economies go bad - because of lack of confidence!!
If people think things are getting better then they will spend and hey presto things start improving!!

Jeez, that was a big pig that just flew past my window :-)

northernlights

Spend - as in borrowing money they don't have? Isn't that how the economy got into trouble to begin with? ;-)

northernlights

Does anyone know when the December 08 quarter REIWA figures are released for each suburb in Perth? They must be due to be published in the next couple of weeks - usually the West Australian Sunday Times has the figures first.

I reckon these will show some suburb shockers that Bitdorff, Druitt and the rest will blame on the lower end of the market being active therefore bringing average suburb prices down heaps! We'll see....

isgraham

I think the economy will come back in one of 2 ways.

1. When people have de-leveraged themselves enough that they feel they can start borrowing and spending again.

2. When enough people enter the workforce who have not gone through what we are about to go through and decide that they have found a new economic paradyme i.e. no boom bust economy and that house prices go up an 10% + each year. They will of course be wrong.

Damson

[QUOTE=Billabong;7292308]It is funny :-) but how do you think economies go bad - because of lack of confidence!!
If people think things are getting better then they will spend and hey presto things start improving!!


I have made this point several times too. I am fortunate in that my job is secure, as are many thousands of other people. I have the same amount of money in my bank account as I did before the crunch began as do thousands of other people. The difference is that we are all being told we're doomed so are hanging on to our dosh. The only good that can come out of this whole mess is that people will stop relying on credit and start saving again - you can but hope. I personally am enjoying my reduced mortgage payments because of the interest rate cuts (although our savings aren't doing so well - you can't have it all), the frequent 10% off everything days in Homebase, Debenhams' permanent, bargain basement sales, the increase in two for ones at the supermarket and the lower petrol costs.

I've quoted on here before about shares in a major company plummeting dramatically from £2+ to just 11p (nightmare). There was then a steady climb until it reached the heady heights of 19p. Then what did the company do? It announced doom and gloom, that bad times were ahead and hey presto, the price plummeted back down again. This is only an example of the psycological effects negative media can produce. I'm not saying everyone should lie and say everything is rosy because clearly it isn't but really, everyone knows things are bad and I can't see how shouting it from the rooftops every 5 minutes helps.

Having said that, it really is grim for the poor, unfortunates who are suffering job lossess and this isn't meant to dismiss them. I just don't think it's helpful to keep talking the credit crunch up and that I think the media on the whole isn't helping and should JUST SHUT UP!

NKSK version 2

In Australia I think it is the opposite to this. The government (and the real estate industry via the media) constantly talked the economy up for most of last year until ultimately they began to look a bit stupid - emperor's new clothes and all that.

This could have impacted negatively on households who may have splashed out on goods thinking that all was rosy when in fact it was/is hitting the skids.

Damson

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Interesting to hear both approaches. Something in the middle would be good - wonder what Singapore are doing!

Amazulu

Maybe but Brown, Darling and co have been doing the same in the UK - and G Bush was doing the same in the US. Check it out.

Edit: Just wanted to add that this is not an opinion on Perth's property market as I, like everyone else on here, do not know what is going to happen to it.

Amazulu

Singapore is officially in recession.