Excerpt from Rodney Dickens–
“In this, the fourth chapter of The Real Housing Market Story booklet being written in installments I present an update of the coastal and resort property market story. This story is the epitome of a speculative bubble.
It is an important story because it provides insights into what will happen to coastal and resort property prices in the future, but also because it will help people distinguish a speculative bubble from a normal boom.
This distinction is important. While normal booms are followed by reasonably orderly downturns that don’t result in many casualties, speculative bubbles are followed by carnage of the sort that can leave lots of people in financial distress.
Having been probably the only person doing detailed research on many parts of the coastal and resort property market around the country since 2005, and having correctly warned people it was a speculative bubble before it inevitably burst, I am uniquely qualified to tell this story. ”
Source: Rodney Dickens – Managing Director and Chief Research Officer
Strategic Risk Analysis Limited / http://www.sra.co.nz