I couldn't believe this article in the Herald today. We are in a housing bubble which has only begun to burst and they
say "price drops pale compared with the rises we have enjoyed over 10 years". That’s true, but don’t “relax”. To be accurate, the bubble started around 2002 where house prices in NZ left their 30 year trend and ballooned by 100% due in part to easy credit. Barfoot & Thompson would argue stabilization, they aren’t exactly unbiased. In reality we are at least a decade ahead of trend and that’s how long you may have to hold your investment property in order to sell it at the price you bought it for (if you bought at the peak). You can watch the housing bubble deflate at link text on the statistics page – its updated quarterly.
Thursday 26 February 2009
Housing market looks better from a distance
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Beware of a salesman selling you the shirt off his back? As someone who made most of his money from real estate investing I would argue that in six to twelve months sellers will be begging you to buy their properties. All we have here are bankers and realtors who are all trying to push their own propaganda to help fill their own pockets. Either that or they are totally deluded. Unemployment hasn't even started to take effect yet. We are only just starting to see it as businesses flounder in difficult times. When that happens it will become a buyers market even more.
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