US recovery puts dent in Australian property crash forecasts
Recent claims by commentators such as Harry Dent that the Australian property market is headed for destruction have been challenged by local and international data.
Geoff Baldwin, RE/MAX WA managing director, said claims by US commentator Harry Dent that Australia’s ‘property bubble’ is set to burst, followed by years in the doldrums, are being disproven by the recent US recovery.
“All but two of the mainland states have experienced increases over the past 12 months, with some achieving growth as high as 23 per cent,” he said.
“Forced sales are down by around 70 per cent and there is generally a positive feeling right across the market.”
Mr Baldwin said there would always be a market for negativity, but investors just need to look at the data to see what’s really happening.
“It amazes me that people like Dent, who have been making money by talking the world’s economies and property markets down for years only to be proven wrong time and time again, are still given any degree of credence - but I guess there is always an audience for negativity," he said.
“The popular consensus in 2008 to 2010 was that our Australian market was destined for decades of doom. However, I am happy to say that I, and other rational observers of the economic cycle, remained confident in predicting that we were experiencing just another bump in the road, albeit a fairly large one that took longer to repair.
“Our local markets are very much on the up and up and any owner occupiers or investors who are listening to people like Harry Dent and holding off for the market to crash are sure to be disappointed.”