Saturday, July 09, 2005


A round and a round and a, up and down and a...

Only five days after we learned that house prices were on the way down, house prices are now on the way up.

On July 4th The Age reported a warning by investment bank ABN AMRO that “the economy is facing a period where declining household wealth should be a significant and ongoing drag on growth as the massive bubble in house prices slowly deflates", and that “Australians will see their wealth decline for the first time since the last recession

And now, only five days later, The Herald Sun, Australia’s favourite newspaper, reports that house prices are going to rebound, according to Australian Property Monitors director Louis Christopher. “A housing price recovery might be arriving sooner rather than later”, says Mr. Christopher.

So there you have it. We’ve been through the worst, and survived. The week just gone was horrific, our net wealth plummeted, but recovered in time for the weekend.

It’s a miracle, the invisible hand of the market. Don’t you love it?

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