Is the Property Market Cooling Off???

It’s interesting hearing some of the commentary out there at the moment,

some nay-sayers saying the property market is about to fall off the perch,

but it just doesn’t seem to be cooling off….

See here for last weekends auction clearance results for Sydney at 75.6% (!):

http://news.apm.com.au/apm-news/sydney-june-14th-auction-report-20120423-1xfsg.html

See here for Melbourne’s results of 73.9% (!):

http://news.apm.com.au/apm-news/melbourne-june-14th-auction-report-20121213-2bc7b.html

See here for Brisbane’s results of 38%:

http://www.homepriceguide.com.au/saturday_auction_results/brisbane.pdf

(source Australian Property Monitors)

I personally don’t know how long this can last, say 12 months?  6 months?  As the following factors

have to kick in some time:

  • Unemployment: More people being sacked than hired – how to people borrow when they’re not working
  • Interest Rates have to go up at some stage, being too low for too long isn’t sustainable
  • Mining Boom has come and gone, what’s driving the economy at the moment???
  • Prices in some places just unaffordable, but people are still paying !!!

I have a saying (got it from Robert Kiyosaki) —

“If you plan for the Bad Times, You Will Always Have Good Times!!”

Let the good times roll!!!!

Til next time,

Nhan

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