If you have come to this blog looking for upbeat fluffy stories then you have come to the wrong place. If the market is up at record highs, then we say the bubble will burst, and it’s doom. If we are in the vasty deeps of a massive bear market and, well, it’s gloom all round.
We have been following the Aussie and Canada housing market for a while
If you think the UK market was crazy, think again. Australia and Canada (and New Zealand too) are another thing. Most housing markets have the characteristic shape of the UK, namely they go down a bit in the 1990s, up a lot in the period leading up to the crisis, then a sharp correction followed by a gentle recovery.
Aus and Can had none of that, they simply never stopped. Until recently, anyway. Now there is/are a slew of stories like this (Vancouver) and this (Sydney). Many of the stories follow the usual pattern – through the worst, best yet to come, supply outstripping demand, canny buyers, etc., not forgetting the ‘shortage of foreign buyers’.
Nor should we forget London, where recent falls in the market have been masked by the national index. Munich, which is a separate and interesting story, should be the subject of a separate post.
Have a good weekend folks, but don’t forget to tune in on Saturday, where you may find some stuff of interest. No promises though.