Wednesday, June 30, 2010

Stagnating House Prices


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?


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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