Without launching into a long-winded evidence base post, I would like to ask how come half the people in the property forum are complaining that it is tough times at the moment?
I mean if you look at real wages they have never been higher - inflation is moderately low - unemployment is moderately low.
Yet people are predicting the end is near for the housing market because things are 'tough' - well I can tell you that things have never been better - those complaining about things being tough point to a few job losses here and there, however this is nothing but the normal restructuring of an economy that happens all the time.
I expect housing prices to correct one day myself when the going actually is tough (high unemployment - high inflation), but it is good times at the moment - the GFC was just a small bleep in Australia, so we are still good for another cycle which is probably ten years away from popping.
