1 - More downside prices for Australia's housing market
The Australian housing market is in the "bargain hunting" mode now. And that could add to downside losses.
If you recall, the FT did a piece on the falling market, citing people balking at paying high prices, that I took issue with. You need a catalyst for these things to happen. And once the market starts to fall, that's when people balk at prices. The psychology of rising prices, where people scramble to buy before prices go even higher is turned on its head. As prices fall, people start waiting for prices to fall even further.
Here's the South China Morning Post:
Rhi, who lives in the Illawarra region of New South Wales, south of Sydney, works in construction. She says she plans on biding her time and “snapping up...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.