Hello Malaga, Just to set the record perfectly clear - this is from a Kitco article on 14th August 2006.
http://www.kitco.com/ind/charnock/aug142006.html (Mining Research was my initial bolt together site before I got the new one up and running in October that year.)
"Here in Australia I have watched in horror as numerous TV shows promoted renovation and over investment in over valued property as a way to get rich. This was done at the height of a boom in property that coincided with a long term bear market in interest rates. Housing prices went up in the 70’s during rising interest rates, uncertainty and high inflation however they did not keep up with gold or silver as asset classes. Wages were growing at the time of course and this is a major difference and issue today which should be factored into investment decisions."
and
"Geopolitical tensions / conflict, massive printing of fiat currencies, corporate and Government corruption, “massaged” joke inflation figures, unwinding carry trade on a massive scale, investment price bubbles in several sectors …all point to scared capital seeking a safe haven and value investment destinations. Precious metals are only just beginning to shine and are no where near inflation adjusted values of 25 years ago."
For the record gold was US$669 per oz and the bond markets started to fall out of bed a few months later in 2007 culminating in the credit crisis in 2008. It was not a good time to buy houses at that time and even worse over the following couple of years after I released that article.
What I said in my post - which you misunderstood - was that since 2001 we have had "falsely driven growth". Did you follow the Asian melt down, Russia, the Millennium scare and LTCM. They were rumblings at the end of the real cycle.
Now look at money supply and you will see it went ballistic around 2000 and exploded in 2008. That is what I refer to in 'falsely driven growth'. Debt cycles drive housing not demand as some falsely believe. People need to borrow to buy houses so debt is key. No finance no purchase.
I hope that helps you understand things a little better malaga - including my own position.
