Sydney property market being fueled by shortage of stock: Ewan Morton

I was almost tempted not to blog this week on the whole boom, bubble or bust debate. 

At best I think it sounds like a playground game for kids; at worst it could be a late night drinking game!

And like those games I’m not sure there is any real purpose or value to the debate other than to perhaps occupy or distract participants for a short period of time.

And to be perfectly honest I’m not sure that anyone, including myself, really knows exactly what is going on out there right now but the market has undeniably picked up.

So let’s have a look at the options:

At the current rate of exposure I’d suggest any bubble is being inflated as much by the hot air of over excited media and agents as the ongoing record low interest rates. 

However there is no doubt the market is being fuelled by a shortage of stock. Whether that makes a ‘bubble’ I’m not sure, but only a month ago we had fallen to record low stock levels. They’re now slowly starting to increase but I anticipate it could be a while before they return to traditional levels.

Does that mean the bubble will automatically deflate if we all stop talking about it? Or will the chatter continue to rise until the bubble inevitably pops?

In my view neither option is appealing.

A boom?  I’ve said it before -  I hope not. 

Just like a drinking game surely we have all learnt the hard way that after the euphoria of a boom comes the dreaded hangover.

Maybe it’s because I had to deal with the hangover last time that I know it isn’t pretty. 

Let’s drink responsibly this time.

Ewan Morton is managing director of the Sydney based Morton & Morton.

Ewan Morton

Ewan Morton

Ewan Morton is managing director of the Sydney based Morton & Morton.

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