19 February 2011

There's no bubble after all

Sorry everyone, I was mistaken. There's actually no house-price bubble:

"Buyers have been told that Melbourne is not suffering from a house-price bubble.  Property valuer Greville Pabst, of WBP Residential Advice, said that although property prices were higher than 10 years ago, these prices had become the new norm."

Greville doesn't actually provide any reasons why high prices are here to stay, but he's in the real-estate industry so he must know.

Sorry about that. I will shut down this blog straight away.

Comments welcome.



  1. Is Michael of Sydney holding you hostage?

  2. "These prices had become the new norm."

    Something smells Fishy....Irving Fishy.

  3. Pheew, glad about that. These blogs were costing me too much valuable time.

  4. I nearly fell out of my chair laughing when I read this. Isn't a sure-tell sign of a bubble, when somebody says prices have reached a new permanently high plateau? LOL "new norm". This stuff is gold.

  5. lol!

    i nearly wet myself laughing at the moron!

    As somebody i admire recently said "New assholes are gonna be torn as this market corrects ..."

  6. http://www.heraldsun.com.au/news/victoria/prices-rebound-as-property-heats-up/story-e6frf7kx-1226008836500

    More spin from REIV and media.

    98% of article celebrates house price increases over the past 12 months.

    Not until you get right to the end do you see that over the past 3 months house prices have fallen across Melbourne.

    But does that come from REIV? No way!

  7. Well I can see why those people and many others still believe that property prices always go up in long-term and never go down. That's because most people only see the last 5-15 years records in Australia and being delusional from constant news-feed like in the article above.

    I think Andy's blog is good idea to try and attack the delusion from basic, easy to understand arguments. From my experience it is hard to convince the delusional mass out there that there is property bubble right now in Australia and the price will correct sometimes in the future. But, I can see some progress, at least by getting the same delusional people to question their logic / premise, by tackling their dogmas e.g. rent money is dead money, property prices always double every 7-10 years, property price is always stable and never go down, you will get ahead financially always by having property compared to other investments, etc.

    Keep up the good work Andy...don't close your blog yet.


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