Wednesday, June 30, 2010

Stagnating House Prices

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The price of something rises 0.5% in a single month, and this is thought to be stagnant?  Is it possible that our expectations for house prices are now such that anything less than double figures p.a. is disappointing?

2 comments:

Leith van Onselen said...

I suppose when you have so many negatively geared investors in the market, making large income losses from holding property, any capital appreciation below 6% is viewed as a loss maker.

The Weatherman said...

Indeed yes - surely it's time for another First Home Owners Grant, or better yet, an Established Home Vendors Grant.

I still think the Chinese have the right idea (see my post of May 4).

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