Friday, October 22, 2010

House Prices

The never-ending debate about house prices continue, with The Economist providing some ammunition for those arguing that Australia's house prices are ripe for a fall. In Queensland the property sector is far from buoyant but there's also a chance that we could be in for a period of settled prices. To be honest I haven't a clue, although I know the cases for both sides (see earlier posts for the debate).

A house price fall would be negative for many people in Australia partly because rising house prices make people feel wealthier. I think it's unlikely that there'll be a rapid price fall anytime soon, which means that I'll be forever locked out of the housing market!

But anyway here's The Economist's table:

From 1997 to 2010 house prices increased by 220%. I knew there was something I should have been doing with my cash in the 1990s instead of going out for expensive breakfasts all the time. Looks like I missed the boat, but maybe we'll be thinking in 2023, "sheesh I wish I'd bought a house in 2010". Who knows?

What we do know is that right now it's much better to be living in Australia than in other countries where they speak English.

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