The housing market appears to be out of control. But there are so many things we can do


I’m dumber than our house.

For the past 10 years, I’ve woken up before dawn to produce an early morning radio, slipping outside in the dark while trying not to wake our sleeping children.

As they got older, I kept working, juggling the rhythms of family life with the demands of live TV, often back in the dark in time to help with bath time and sleep.

Betty is not that stupid. It’s just sitting there.

Homes in Canberra, where I do not live.(ACT . government)

Recent sales of comparable properties in our area have added weight to what the data was already telling me.

In the decade we’ve lived here, it’s possible that our home has increased in value or more than what you earned in income.

I do not earn a small salary, but I make a small profit, constantly, by building the bricks and wood – and most importantly, the land on which he sits – which increase in value with age and the growing population of Melbourne.

Some people think that’s great, that my house has achieved such insane growth of capital.

But is it so? I’m not sure.

The happiness factor

One of the main elements of what rising home prices do is the so-called “wealth effect”.

Hand holding different denominations of Australian banknotes.
If you own a home, high real estate prices can make you feel rich even though it is difficult to “make” that profit.(ABC: Simon Leo Brown)

It’s where you feel richer, so you’re more flexible in spending. This boosts the company’s earnings, profits and investments and should lead to inflation and higher wages.

It’s one reason economists are concerned about falling home prices. They create a “negative wealth effect” and people close their wallets even though their financial situation is basically unchanged.

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