For quite some time now we’ve been told by economists and experts that the housing market will fall. When that’s supposed to happen? Nobody can say for sure. However, you have to consider that it may not happen at all.
However, the business is still under pressure after suffering from the financial crisis which occurred earlier this month. Despite their growth, Mirvac’s earnings ratio has been dipping since 2007.
Is Aussie property really in a price bubble? Well, yes and no. I say yes and no because property has some unique characteristics that make it hard to compare to stock or cryptocurrency bubbles. Let’s have a look at a few of them now.
The divide between the generations is real. And although starting off has never been easy — and it’s not meant to be easy — it’s still fair to say no generation has had to start off at such a disadvantage when it comes to buying a roof over your head.
Australians, individually and collectively, have bet everything on housing. And every year, we double down on that bet. There’s no certainty that 2018 will be the year our housing gamble goes bust. But it would be madness to be certain that it can’t. Aussie property investors in Australia could be in for a rough year.
Just because rates have been at records lows doesn’t mean they can’t go any lower. For one, there’s the Aussie property market to think about. However, by looking at what the big banks are doing, we can glean what the RBA is likely to do in the future.
JB Hi-Fi Limited shares have gained 4.89% today. At time of writing, shares are trading at $28.11 up from $26.80 yesterday. What caused the share price increase?
There’s plenty of momentum to come from the US housing market. This is important because it will drive the US economy. And yet this process is widely underappreciated in the mainstream media. Hence why there’s a persistent sense that the US is close to a recession. I don’t see that happening in the immediate future. The charts aren’t suggesting it.
In today’s article, Ryan looks at the age-old story of bubbles, and why humans keep repeating the same financial mistakes again and again. It was originally published on 21 November, but the warning it contains is just as relevant today.
The further away from ‘normal’ a prediction is, the less our brain is inclined to believe it. That anchoring mechanism is then backed up by a second survival trait. The tendency to stay in the safety of the herd. The result?