The housing crash is cascading around the world, and the dire predictions are coming true. Here’s the latest chart from The Economist – check out Ireland on the bottom. That’s a crash, not a “balanced slump”.
Meanwhile Trade Me just surpassed 70,000 property listings, on the back of signing up one of the last few major real estate agents holdouts.
Things to look out for in the next few months are:
Trade Me listings volumes to peak as the remaining real estate companies sign up, and then settle as the market slows
Increasing time to sell and lower average prices (duh), especially at the top end
A drop in the newspaper pages dedicated to housing advertisements and articles, lowering the income for the likes of APN and Fairfax
Real estate agents switching careers as they have less commission to share around the industry
and a fair few had luck stories from speculators that got in at the peak and/or didn’t get out in time
a general downturn in optimism & perhaps the internal economy
That sense of déjà vu is the ghost of 1987 creeping back.