The market is flat and we have to wear it

I attended a REIWA event the other day and the outlook was that the market is probably going to continue as is for the next 12 to 18 months. And by continue ‘as is’ I mean it will remain challenged and overstocked.

While it is not very comfortable for some, we need this period to allow the market to find normality. Right now we are feeling the hangover of the GFC and the resulting Government intervention. The stimulus was necessary and it was effective in keeping the country out of recession, but it didn’t come cheap. Demand was pulled forward and now the market is trying to find its way without any outside intervention and we need to leave it alone.

When the market falls into this sort of plateau, people worry and those industries that are driven by the property market find it hard, but unfortunately it is just the name of the game. We need to leave the market to its own devices and that means the Government needs to resist any form of intervention

Just like it has before, the market will come back. We just need to let it do it on its own this time. History shows that when it finds it rights itself, it lifts rapidly.

John