Rodney Dickens of Strategic Risk Analysis Limited shares in this his second installment providing essential insights for property investors and would-be home owners.
To recap, in the first chapter of his booklet that is being delivered in instalments Rodney looked at the importance of real or inflation-adjusted house prices and shed light on the question of whether it is time in the market or market timing that matters most for housing investors.
Chapter Two – House and section price behaviour after the speculative boom.
Forward from Rodney—
“In this, the second chapter of the booklet I show how house and section prices behave after a speculative boom of the sort New Zealand experienced between 2002 and 2007.
The analysis shows how to identify markets where prices are out of whack with the underlying demand-supply balance, which occurs especially when vendors effectively withhold supply. However, ultimately the demand-supply balance will come home to roost for real or inflation-adjusted property prices, as occurred after the mega-boom in prices in the early-1970s that was discussed in Chapter One.”
