Positive news for property

This year there have been a few claims that house values will fall significantly, including this one from Christopher Hire (20% fall) or this report on Steve Keen (40% fall). Such a drop in property seems credible on face value as we’ve had significant drops in values on the share market – why would property be immune? Well, as was recently explained in The Australian, it’s really apples and oranges. And, in fact, it turns out that residential property prices have actually increased each of the last two months.

Okay, the increases are very slight, but even a slight increase is a somewhat different reality to a significant fall. I think rumours of the death of the housing market have been exaggerated…