Finance, Forex and Investments

Are the massive drops of interest rates & falling shareprices the start for a new property boom?

In Sydney at least, current conditions are: - Sharemarket volatility - Bear market - Massive cuts of interest rates - Few new housing constructions because of the recession - Rental shortages - Years of stagnant property prices (property bubble popped in 2004-3). Good conditions for the next property boom?

Public Comments

1. No.
2. Yes, but the 60 to 70 year K-wave cycle has completed most of the winter phase. We have just finished the real biggest property boom in the cycle. After the bottom is finally reached, the spring phase will have smaller booms. Expect 15 to 20 years of solid but slower economic growth, stocks up, bonds down, commodities up, very low inflation, a period of new technologies and innovation like the 1950's and 60's.... Read about the K-wave and (the Kondratieff wave) as many rich people follow. Many books, many people waited for this expected boom and are scooping up cheap properties.
3. One would think so, however most banks are not lending, and unless one has a big cash down say 20% a loan could be difficult. I don't see real estate prices recovering to previous highs until at least 2019. This is based on the historic trend that real estate prices move in 13 year cycles. If 2006 was the top, add 13 years to the next near top.
4. I doubt it. They could rise a little, but I doubt there'll be another property boom for quite some time. Dave