Property bubble burst! Is it true?
Sep 30th 2002 | 12:55 am
#16
Guest
Posts: n/a
Re: Property bubble burst! Is it true?
In early 2000 people were falling over themselves to buy tech stocks
barely a week before the market began to slide.
Jeremy
>On Mon, 30 Sep 2002 05:13:08 +0000, trismtr wrote:
>Strange thing is, the buyers are still strong and going.
>Do you have any opinion on this?
barely a week before the market began to slide.
Jeremy
>On Mon, 30 Sep 2002 05:13:08 +0000, trismtr wrote:
>Strange thing is, the buyers are still strong and going.
>Do you have any opinion on this?
Sep 30th 2002 | 3:29 am
#17
Banned
Joined: Aug 2002
Posts: 7,613
Re: Property bubble burst! Is it true?
Just remember that while housing is a market, with supply and demand issues, economy and consumer confidence issues etc, it's not the same as the market in any other stock/ commodity/ widget: eg:
people need to live somewhere unless they fancy a park bench
demographics and sociological trends matter a lot, these days there's more demand for single person/ single parent family accomodation than ever before
there is a limited amount of desirable buildable land (less of a problem in Aus than Europe)
location location location.
But like most markets, housing goes through a cycle that at one point is characterised by with fear/ avoidance (= lower prices)
Cheers - Don
people need to live somewhere unless they fancy a park bench
demographics and sociological trends matter a lot, these days there's more demand for single person/ single parent family accomodation than ever before
there is a limited amount of desirable buildable land (less of a problem in Aus than Europe)
location location location.
But like most markets, housing goes through a cycle that at one point is characterised by with fear/ avoidance (= lower prices)
Cheers - Don
Sep 30th 2002 | 5:50 am
#18
Guest
Posts: n/a
Re: Property bubble burst! Is it true?
In pleasancefamily wrote:
> Just remember that while housing is a market, with supply and demand
> issues, economy and consumer confidence issues etc, it's not the same
> as the market in any other stock/ commodity/ widget: eg:
True, although it's not immune from bubble-then-burst cycle either.
With so many houses being bought over the past couple of years
for rent, both in the UK and Oz, the overall housing market
gets closer and closer to being equivalent to a share or
commodity market.
As has been pointed out by others, there's now more rental
properties than renters in Oz. This has been the case too
in London for a few months.
If I had a rental property that wasn't paying its way and
the property market was (as it is now) at a high, I'd
certainly want to sell and put the money in the bank.
And remember, a house that was worth $100k last month and
sells for $110k this month is still the same house and
there's absolutely nothing to stop it being valued at
$100k again next month.
The only thing that ought to influence house prices in
the long term is inflation.
> Just remember that while housing is a market, with supply and demand
> issues, economy and consumer confidence issues etc, it's not the same
> as the market in any other stock/ commodity/ widget: eg:
True, although it's not immune from bubble-then-burst cycle either.
With so many houses being bought over the past couple of years
for rent, both in the UK and Oz, the overall housing market
gets closer and closer to being equivalent to a share or
commodity market.
As has been pointed out by others, there's now more rental
properties than renters in Oz. This has been the case too
in London for a few months.
If I had a rental property that wasn't paying its way and
the property market was (as it is now) at a high, I'd
certainly want to sell and put the money in the bank.
And remember, a house that was worth $100k last month and
sells for $110k this month is still the same house and
there's absolutely nothing to stop it being valued at
$100k again next month.
The only thing that ought to influence house prices in
the long term is inflation.
Oct 1st 2002 | 1:39 pm
#19
Forum Regular
Joined: Jan 2002
Posts: 176
From: Sydney
Re: Property bubble burst! Is it true?
Sydney, Oct. 2 (Bloomberg) -- Australia's central bank kept its benchmark interest rate unchanged for a fourth month in October, signaling it's concerned slumping stock prices and faltering global growth will slow the economy.
The Reserve Bank of Australia held the overnight cash target rate at 4.75 percent, as all 22 economists surveyed by Bloomberg News forecast. Economists are split on whether the bank will raise rates this year, with 11 predicting a quarter point increase by December.
The Reserve Bank of Australia held the overnight cash target rate at 4.75 percent, as all 22 economists surveyed by Bloomberg News forecast. Economists are split on whether the bank will raise rates this year, with 11 predicting a quarter point increase by December.
