Happy days are here again sings the MSM with a slightly nervous tremor. The sky is still falling proclaim the naysayers with the same nervous tremor. Auction rates at 70% in Melbourne. Normalcy bias in the multiple digits. The population is happily ignorant and feeding quietly. Did Oz dodge a bullet and now has a couple of years before the next one is more accurately despatched - or is the adrenalin still working and we haven't worked out we're fatally wounded and the buzzards are circling?
The media are all bulls by vocation. They sell better when the news for investing/growth is good. They can't be bears as the tone of their reporting would turn off their readership. RE industry has no other modus operandi than when times are good. I wager a bet everyone in the RE industry now only knows good times and has structured their business models to suit. I doubt there is anyone left in the RE industry who was still working in it when times were tough with interest at 18% and 'the recession we had to have' was looming. Anyone who survived that would have gotten out of the game when they could. So they need to be positive. Just like anyone I'm sure a junior RE agent is only one or two months salary away from the poorhouse. Senior RE agents even more as they would be geared to the eyeballs personally and professionally tied into the debts of their business/partnership.. Clarificaton - I'm not talking about long term investors. I mean auctioneers, agents, and those people who demolish perfectly good houses for shoebox 'luxury' 1 bed apartments.
I seem to remember that a few of the people who called the 2008 slump spoke of 2014 as a possible inflection point for the next leg down, based simply on the mountains of debt and the refinancing schedules. F that's the case 2013 seems like a great time for a peak in stocks and economic optimism.
