The reason house prices aren’t volatile are many fold. One of the primary things in Australia major cities that make housing feel like you can’t lose - is supply.
Houses are not volatile for the average punter because there is no liquid exchange whereby the value of each persons house can be bid on 8 hrs a day. If there was and there was homogeneity in the assets; with the average punter able to understand value quickly; you’d see the same volatility. Houses also have high taxes on transfer being stamp duty so once again you don’t have the volatility because you don’t have the liquidity.
Comparing these two assets is ridiculous. Comparing one being able to be short and the other not, also ridiculous. It shows a complete lack of appreciation for different assets, markets, returns and risk.
PNV Price at posting:
$2.12 Sentiment: Hold Disclosure: Held
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