Bye-bye to boom and bust

[Weasil007]

http://theage.domain.com.au/home-investor-centre/byebye-to-boom-and-bust-20121026-2890c.html

"The property cycle is said to have three phases: boom, bust and recovery. In the past decade, however, economists have identified a fourth phase - stabilisation. It's a period when prices remain flat before new market dynamics kick in and trigger a recovery.

A stabilising market can last for many years. Because of this, and because of pressures on affordability, there's a growing consensus that a more modest rate of price growth is likely in coming years."

Stabilisation is upon us...now all we need is the new market dynamic and were off again

 

[redwing]

Should it go into 3rd place or 4th though?

Stabilisation is upon us...now all we need is the new market dynamic and were off again

Add in markets within markets dialogue

 

[spludgey]

I really don't believe in this cycle thing. We're just always looking for patterns, that's just an evolutionary trait. Same as seeing Jesus in a slice of toast.

 

[Weasil007]

I really don't believe in this cycle thing. We're just always looking for patterns, that's just an evolutionary trait. Same as seeing Jesus in a slice of toast.

One sighting of Jesus on a piece of toast does not constitute a pattern, multiple sightings of aforementioned Jesus may constitute a pattern...

 

[Weasil007]

Should it go into 3rd place or 4th though?



Add in markets within markets dialogue

Naturally

 

[Aaron Sice]

http://theage.domain.com.au/home-investor-centre/byebye-to-boom-and-bust-20121026-2890c.html



Stabilisation is upon us...now all we need is the new market dynamic and were off again

all i can say,is that its about fkn time.

boom/bust cycles are destructive no matter what the direction.

 

[Graemsay]

Being cynical, I suspect that a lot of people who're advocating property market stability are the ones who've done very well in buying a well located house when they were relatively cheap, and wanting to lock in the gains.

There were very few critical voices during the boom years. And anyone who raised concerns was shouted down.

 

[lizzie]

Stability is good - it allows those who have made CG to lock it in - it allows the new sector of purchasers to "catch up" with the market via wage increases/deposit saving and hopefully climb aboard - it prevents slaughter of those skimming close to the edge.

Stability in all facets of life is great - it allows room for thought, consolidation and experimentation/innovation.

 

[Ausprop]

by stability we are talking about a new high low? it's as simple as being good for those that are in the market and bad for those that are out.

 

[Weasil007]

by stability we are talking about a new high low? it's as simple as being good for those that are in the market and bad for those that are out.

I'm actually a bit confused by this article. It seems they are only talking about stabilisation after a decline in the market (extended low). Shouldn't there also be stabilisation at the top end (or any point in the cycle when you think about it) as well before dropping or rising again? Maybe we need 5 phases of market status, being: boom, bust, recovery, ascending stabilisation and descending stabilisation

 

[Aaron Sice]

There were very few critical voices during the boom years. And anyone who raised concerns was shouted down.

really? i remember a number of people expressing a great deal of concern, especially on here, about the ramifications of booms right at the peak.

 

[M.Investigator]

Its always nice to hear stabilization over recession. Although they rhymed. Stabilization brings hope that everything getting under control, trying to prevent drastic price and forex fluctuation.