by Marshall Cobb - Head of New Projects
60 minutes ran a highly sensational story last Sunday night on the property market. The experts who participated had to move straight into damage control and sheepishly clarify that their comments were taken out of context.
Lets have a quick look at the culprits...
On Tuesday Stephen Koukoulas (The Kouk) issued a public challenge to Martin North, stating that it is easy to construct a headline grabbing forecast, and offered North 6 to 1 odds ($15,000 to $2,500) that house prices anywhere will not fall by more than 35 per cent from their peak at any stage before and up to the December quarter 2021. North declined to participate. Full Story
Simon Buckingham (Sophisticated Property Investor) reminded me that the doomsday merchants are always lurking...
Seems to me that these individuals are more about raising their profile (and selling books), than providing a balanced summary of the real estate market place.
On the other hand one of the more credible analysts, Moody’s Analytics paints a less gloomy picture of housing markets over the coming years. While, growth is forecast to be subdued relative to previous years, the forecast is for a relatively mild downturn, with national house and unit values returning to mild positive annual growth by the middle of 2019. Full story.
Let me repeat that - mild positive annual growth by the middle of 2019. That's next year!
This is what the bottom of the market feels like! Don't be fearful - get excited as there are terrific buying opportunities to be had. And it may not last as long as you think.