This Friday we’ll get to see the latest bad news on the house price front, which is bound to be lapped up by the weekend newspapers to remind us how life sucks and then you die!
The media’s preoccupation with bad news is (as the French) would say ‘raison d’etre’ (or their reason for being) but don’t believe the residual impression that all’s not well in the state of Australia and its economy.
In the Fairfax press today, the hand-wringing story is that there are seven charts that show:
Of course, the really big reason is that there’s simply price exhaustion in Sydney and Melbourne after four years of market madness. Sanity is prevailing. Ironically, those people in the media now writing about price falls worries are the same ones tipping that the house price bubble would burst, with seriously scary implications for three out of those four years.
In fact, according to this Fairfax/Bloomberg story, this current price fall shows the drop in prices is one of the slowest in recent times. Why? Well, for starters, it’s happening without a threat of a recession or rising unemployment, which is something worth cheering about.
So while I’m getting positive, let’s look at the current crop of good economic omens out there right now to offset the negativity from media mates addicted to ruining your sunny dispositions.
In the absence of a black swan throwing a curve ball at the global economy, the USA or China (could Kim Jong-un be a black swan?), it makes sense to be cautiously positive about the Oz economy.
One day it will be wise to be negative on our economy, but now is not the time. The housing boom saved us from a serious economic downturn when the mining boom went off the boil. And while the economy is not going gangbusters, it is making gradual improvement, which is not worth whinging about.
Enjoy the ride, even if it’s not as exciting as you’d like. At least it probably means the next recession is a lot longer away than the negative nervous Nellies out there would have us believe.