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Agents Tipping Housing Crash After Grant Glory

Discussion in 'Real Estate' started by Chris C, 19th Mar, 2009.

  1. Chris C

    Chris C Well-Known Member

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    Agents tip housing crash after grant glory - Queensland - BrisbaneTimes

     
  2. Chris C

    Chris C Well-Known Member

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    Speaking as someone who has their property currently listed in Brisbane, and whose property is just out of the $500K range I can testify that despite having it listed for a couple weeks now and having dropped the price a couple of times already we can't even get our selling estate agent's phone to ring...
     
  3. Tim

    Tim Well-Known Member

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    My concern is for first home buyers, if the market crashes they lose out in the short term
     
  4. Chris C

    Chris C Well-Known Member

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    With the news that the FED just dumped $300B into longer term US Treasuries and $750B in mortgage backed securities (which I'm assuming will be the first of many attempts to flood the economy with money via buying assets) therefore any short term losses will probably be quickly regained back through inflation in about 1 - 3 years time. Dumb luck may save FHOB's...

    If you are wondering how the US printing more USD's affects our inflation you have to realise we live in a globalised society and money movements are largely unhindered and with the USD being the reserve currency of the world the US to a degree is able to pass on its inflation to the rest of the world.

    Also the US will not be the only country to do this, Japan and England are already well into the quantitative easing game, and apparently the ECB are starting to form their game plan in relation to quantitative easing. I know most people like to think we won't get to 0% cash rates like the rest of the developed world, but I think the only reason we won't get there is because the RBA will realise that traditional monetary policy is not working and it will opt to jump straight into quantitative easing even before we go below 1% cash rate.

    :D

    Property prices may not plunge after all if inflation can beat it to the punch.