Housing market continues state of flux

Some good and bad news for home buyers with one research firm saying the property cycle looks to have bottomed out while a survey from another says trading conditions are likely to deteriorate over the next six months.


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Well in all due respect to Mr Tim Lawless and his vast experience in the market. I'm just wondering if inflation is still going up and people are cutting down on spending, effectively slowing down the general economy (ppl stop spending the wheel stops turning) and banks relectant to lend more people losing their jobs therefore effectively having problems paying their mortgage thereby forced sell by the banks. True the mining industry is booming so what?! What about the other industries in Australia and around the world?? Australia is self sustainable but still we require trading partners around the world to sell what we have to them to keep the economy up. But if other countries are cutting down spending it in turn means less trade, means less money, means less value of our products cause how can you sell at a high price to another country which is facing economic problems. Sure its a mentality of you want it you pay for it but if we have this mentality we are the losers at the end for they will buy from other contries that are facing similar economic problems but willing to sell at a much lower price to at least keep their market moving. So in the end we will also fall in terms of no trading partners no cash flow in. As for China their growth has also recently in the last couple of years been slowing down drastically and inflation in China is so high that people can't even live on their wage including the high middle income. If I'm not mistaken China is producing processed steel (iron ore from us) by us selling it to them at high price and us buying back from them (few months back in the papers new contract signed a 50% increase in iron ore to them) isn't it a duh?? We sell them at 50% more (Mining companies CEO's are the only ones that is laughing all the way to the banks (FATTER BONUSES)) end up we have to buy back from them (processed steel) at what 50% more minimum?? In turn building house cost goes up, people can't afford to buy, in turn builders have to slash prices lesser and lesser profit til no profit in turn maybe even close down due no point carrying on for most small to medium size companies thereby more unemployment. Sure mining is booming but can they absorb all the unemployed? obviously not. So in all likelyhood 1 industry itself will not be enough to sustain the whole economy. We as a country in also in a state of over inflation it has got to come down a whole lot before the turn about but this is something not everyone likes to hear especially the rich or the new rich as their fortunes will shrink. We the middle or lower income, yes, we will suffer but its for the good of the future economy. No economy keeps going up. What goes up must come down. The world recession cycle is every 10 to 12 years and its here time for everyone to wake up and be prepared for it no point blindsiding ourselves and live to regret or suffer even more for not being prepared to weather this storm. Too Bad for home owners who bought it at a high and now losing 10s if not near 100k. its just you not doing your home work enough in regards to economics but be blind sided by the "Booming" of 1 industry and not taking account of the rest of the other sectors that make up a country's economy. Buying out the economy is not the way to go as its a false market. Look at our friends in Singapore. The last crunch they left it as is, ride it out and inflation is in control though it has gone up but if it hits they are much and way better off then us for letting inflation run away from us, now we have to pay dear for it.

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