Sunday, August 16, 2009
Twister Wrap, ops, I mean Market Wrap for mid August.
Welcome Ladies and Gentlemen!!! Welcome to Friday Fight Night!!! In the red corner tonight we have The Investors. They have come off a loss in their last round, suffering a defeat by technical knockout from the Global Financial Crisis, but they come prepared and battle-hardened ready for this bout. Property Investors have had a 30-2 win/loss up until recently and the latest loss came as a bit of a surprise. There were good signs early on with dropping interest rates, but they took a beating towards the end of the bout.
In the blue corner, we have The Media, with a current winning streak of 4 straight fights, first with a points decision against Un-affordability, then the second round shock knockout with the Global Financial Crisis. The First Home Buyers Boom was a low key affair easy win and just recently, the Turmoil In The Market was disposed of with a few low punches below the belt.
LET'S GET REEEADY TO RUUUUUMMMMMMBBLLLEEEE!
This bout will definitely be one to watch Ladies and Gentlemen. The media has now picked up on the potential for a lot of recent buyers to end up in financial turmoil with the inevitable raising of the interest rates by the RBA in the next two years or so. This will spook a lot of buyers and investors, it's definitely spooked me a little bit at the moment. However, the big question is, how will this constant barrage of negative doom and gloom news from the media impact on current house prices? Just when confidence was returning, once again here we are, getting cut down, letting us know of potential potholes in the road ahead.
It's funny how the media has reacted. They swing very quickly these days between positive, confidence inspiring news, and the doom and gloom negativity. I suppose it's what sells newspapers and gets website clicks, but the question is, how much truth is there to all of this sensationalised market coverage? I will leave that up to your imagination, but what I will say, is that the property market will be in turmoil for a good while yet and the media will continue to let us know about it, you know, just to keep us on the edge of our seats...