Anyone who received Pete 'n Brad's latest market update will have been treated to the mutterings of a blogger called John McGrath (who he?). In short, his thoughts consist of the following:
- the doom-mongers are wrong
- housing weakness will be short-lived
- prices are set to double again in the next 8 years
- commodity boom
- we're the lucky country
- er, that's it ...
No mention of anything that's fundamental to house prices in the real world like, um, high and rising interest rates, dreadful affordability, record personal debt levels. Nope, things are going to remain good because "we're the lucky country" -- and no doubt Mr McGrath is looking forward to the visit of Father Christmas a bit later on this year, not to mention his fairy godmother.
There's no surer way to destroy any ounce of credibility you have as a property 'expert' than by wheeling out the "lucky country" line. Just wait till the commodity boom turns to bust after China decides it should give up building whole cities that no one lives in.
P.S. Tomorrow sees the weekly update and an initial take suggests we had another decent week for sales. The number of properties in the $500k+ bracket appears to have stabilised, which is good news. The bad news is that the $1m+ bracket is not showing much sign of life. Underlying demand for property in our district is definitely strong but it's the cheaper end of the market that's keeping things half respectable.
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