For near 50 years I've been involved in south East Queensland property in sales, building, finance. I think I've seen it all but probably not.
Property is all about psychology, not bricks and mortar, and I think the following:
1. in their panic to get the economy from stagnating governments have deliberately gone about creating asset bubbles and with property, the state and federal home building, buying grants are fueling the flames of a massive building boom. Probably the likes we've never seen. Prices of land, home building and house and land packages will rise exponentially. It's happening now
2. by that fact alone ready built housing will rise accordingly
3. Definitely, 1.99% housing loans are being sold like hot cakes. It's the thought of missing out that creates a buying binge mentality.
Unfortunately this has started and all the ominous signs are there: we are at the start of a massive chaotic property bubble stirred up by government stimulus and the RBA is being passed the dump.
