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Australia And Britain As Exemplars Of The Soft Landing

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http://www.smh.com.au/news/national/housin...4521339101.html

Housing market sets an example

AUSTRALIA has been held up as an example of how to pull off a "soft landing" in the housing market, and as a guide for America as its overheated market teeters on the edge.

In its annual review of global financial stability, released last night in London, the International Monetary Fund expressed concern about instability in the US housing market and identified Australia and Britain as exemplars of the soft landing.

These markets had successfully negotiated a slowing in price growth, from 20 per cent a year to zero per cent in a short period of two years, the report said.

However, the abrupt slowing had left its mark. "The main impact of the price adjustments seems to have been a weakening of personal consumption, which contributed to the slowdown of these economies."

While noting a small increase in bad loans and delinquency rates, the "impact on financial institutions and markets has been mild", the report concluded.

The fund, which is charged with ensuring the stability of the international monetary and financial system, said global financial conditions generally remained sound because of high global growth and low inflation.

However, it warned that countries must prepare for an outbreak in avian flu, adding its voice to myriad economic agencies warning a pandemic could severely disrupt the global financial system.

Countries must ensure emergency plans were in place, containing provisions for financial sector workers to work from home and for banks to have a ready supply of cash.

Any outbreak would send shockwaves throughout the financial system, putting investments at risk. "This flight to quality would lead to declines in equity values," the fund warned.

So I guess it's official now. A soft landing IS possible.

:lol::lol:

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Soft landing? The plane is only just approaching the runway and the sidewinds are making for a choppy touchdown.

The market has only just turned (mid 2005) and corrections can take a few years to bottom. The landing is still quite a way off. Still time to sell.

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Guest Winners and Losers

Well if you call a $100k drop in 12mths a soft landing, soft landing it is then.

http://www.theadvertiser.news.com.au/commo...255E462,00.html

Houses drop $40,000 in downturn

By Angela Saurine

27mar06

SYDNEYSIDERS are selling their houses for an average $38,000 less than they expected as the property market downturn bites.

An investigation by The Daily Telegraph has found that, two years since prices began to fall, three out of every five vendors in the Sydney property market have had to drop the advertised price of their home.

Guru - the other day you said that you had predicted the property market in Australia would crash. So, I guess you are saying that you were wrong then? Hhmmmm.

Edited by Winners and Losers

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Soft landing? The plane is only just approaching the runway and the sidewinds are making for a choppy touchdown.

The market has only just turned (mid 2005) and corrections can take a few years to bottom. The landing is still quite a way off. Still time to sell.

The Aussie market turned to low/no growth in 2003.

Well if you call a $100k drop in 12mths a soft landing, soft landing it is then.

http://www.theadvertiser.news.com.au/commo...255E462,00.html

Houses drop $40,000 in downturn

By Angela Saurine

27mar06

SYDNEYSIDERS are selling their houses for an average $38,000 less than they expected as the property market downturn bites.

An investigation by The Daily Telegraph has found that, two years since prices began to fall, three out of every five vendors in the Sydney property market have had to drop the advertised price of their home.

Guru - the other day you said that you had predicted the property market in Australia would crash. So, I guess you are saying that you were wrong then? Hhmmmm.

1/ 38k less than expected is no big deal is it?

2/ It is crashing in real terms, but a soft landing is measured nominally as it is against mortgages that people decide whether it's important or not.

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Guest Winners and Losers

The Aussie market turned to low/no growth in 2003.

1/ 38k less than expected is no big deal is it?

2/ It is crashing in real terms, but a soft landing is measured nominally as it is against mortgages that people decide whether it's important or not.

Blah, blah, blah. 38k no big deal? Depends who you are. It is a big deal to alot of people. For UK, think 40k GBP's. Yeah, you're right - no biggie. Everyone, look forward to 40k drops (that will be the soft landing) coming to the UK soon. 2006 will be the tester. 2007 will be the reality.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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