What a spectacular reversal in Australian property polarities we are witnessing. Bears, who have celebrated the slow melt (which is intact around much of the nation) are flipping to panicked bullishness, while the bulls, frightened the bubble debate will become self-fulfilling for rate hikes, have turned into bears. APM maestro and bull per excellence, Dr Andrew Wilson, is surely the ultimate example, from the SMH:
So here we go again. The housing market bubble bandwagon is up and running – but this time it’s a crazy boom not a scary bust that is being predicted by some for the Sydney housing market next year.
The reality more likely is that the Sydney housing market is about as close to a boom next year as it was to the bust that was widely predicted for last year.
Sydney’s unemployment rate is now rising towards 6 per cent and predicted to continue to rise.
Wages and profit growth remain subdued in a low inflation economy with a stagnant stockmarket continuing to constrain growth in the prestige market.
The prospect of sharply falling rental yields will also prove a disincentive for new investors.
Prices growth in Sydney is likely to peak over the next six months…
Now I’ve seen everything.
