Real Estate pimps explain when a housing bubble isn’t a housing bubble

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Watching rich bankers who make hundreds of millions from property speculation and all the real estate pimps chime in with the Prime Minister that there is no housing bubble in Auckland is like watching ISIS claim that there isn’t any religious intolerance in territory they control.

Over the last 3 months property values have surged 9.7%. Over the same period, workers wages have risen .7%. While workers in Auckland have an extra $90 in their pocket, over the same period of time, house prices in Auckland have jumped a despicable $67 000.

If that’s not a bubble, I’m a card carrying member of the ACT Party.

The bankers, real estate pimps and Government have to do all they can to pretend there is no bubble because that would demand an actual solution beyond allowing Auckland to sprawl all the way to Hamilton. The reason they don’t want to admit there is a bubble is because the solution would require real reposes on the demand side like stopping our inane lazy migration policies and crack down on domestic and foreign speculators. National don’t want that because the current illusion of wealth for the middle classes who are speculating is the only reason they are voting National, the banks don’t want that because they are making 30% of their wealth off this speculation and the real estate pimps certainly don’t want it because their non-stop party would come to s screaming halt.

The vested interests of those profiting is what is directing the current bubble, not the needs of the people trying to enter the housing market.

Key has built an empire of slum lords and the NZers speculating in that empire are cheering him on from their plush holiday upgrades in Bali.

6 COMMENTS

  1. HousingNZ homes will only be sold to ‘social providers’, yeah right!!!,

    From the pages of realestate.co.nz here’s a couple more tokens in the form of ex State Houses for the ‘property investors’ to play Monopoly with if the Reserve Bank’s 30% deposit rules force them out of inflating Auckland home prices,

    46A Hussey Street, Waverly, Taranaki, one of dozens i have seen flogged off in the Naki since the beginning of 2015,

    26 Rosyln Street, Taumaunui, advertised with the banner headline of ‘Attention First Home Buyers or Investors’…

  2. Don’t worry too much Martyn. History shows us that bubbles pop. The bigger the bubble, the bigger the mess.

    What we can learn from history is that every time. Every single time. At the height of a bubble the mainstream all state “this time it’s different because xyz”. And they’re totally sure there’s no bubble.

    Right before it pops.

    Can’t say when it will pop, all we can say for sure (yes, for sure!) is that it will pop.

    Watch headlines of mainstream publications, particularly magazines, particularly monthly ones. Very positive headlines about the NZ property market…. then it’s ready to pop.

    The market will take care of the hyperinflation in prices. It always does.

    • The cure for high prices IS high prices….until the government applies heavy subsidies or loosens lending criteria.

  3. Martyn I saw this happen in 1997 in Vancouver as the Hong Kong citizens sent their funds offshore before the British handover to China occurred.

    Now go to Vancouver and it is full of Chinese owned property.

    Whenthe money flowed into Vancouver in 97 that ballooned out to become a price war bubble exactly as Auckland has done.

    Vancouver property was lower priced than their other “Premium” provincial city’s of Ottawa & Toronto where I had lived.

    Now not so, and we wont see the price war spread to other centres here in NZ and I predict the bubble will burst after the price stagnates finally and those who needed their house price increase 10% every three months to back their borrowing of the mortgage will evaporate and they will exit the market and prices will stagnate.

    Time to consolidate folks now.

    As I said last week the other provinces are not seeing any house price boom at all and $300 000 will buy into a respectable community elsewhere.

  4. Yes, I get sick of the MSM constantly inviting these so-called “property experts”, “trading bank economists” and also the “NZ Taxpayer’s Union” to comment on economic development, Reserve Bank recommendations or government policy.

    They ALL have vested interests, will never say anything that would harm their employers or members, and will simply be biased.

    Rarely do we get more independent “experts”, say from research institutes, university and so asked to share their views, they do occasionally still on Radio NZ National, but virtually never on privately owned and operated media.

    The worst they will admit is, that there may be a “property pimple”, not more.

    Real Estate agents live off selling homes and other property, bank economists get paid to represent the interests of the credit offering trading banks, living off interest and fees, and we know what Jordan Williams from that Taxpayer’s Union stands for, loyal to ACT and the right wing of the National Party, for sure.

  5. Bubbles do eventually burst, but this bubble is being strengthened by National government incompetence, so it keeps growing. The bigger it gets, the bigger the mess when it does burst. Then the ones making all the profits now will be bleating “help me………help me……….”.

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