An analysis of interest rates, the economy, a handful of economists, a randomiser, and the artist formerly known as Prince.
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?
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.
2 comments:
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.
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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