The Intermediate Guide to Valuation

This data is months old. This goes back to September of last year. Actually, I think it’s only September that I’ve got the house price change up to. So I’m using the data that the Bank of International Settlements puts together to have comparable house prices around the world of house price emphasis.We are clearly still in the accelerating phase there, but if you look at the most recent-data, it’s turning, slowing down we’re seeing. Therefore, there’s falling demand and therefore falling prices.Ryan So.

They will these changes, the APRA rules that they recently brought in, which I did do an episode about, where they’re trying to, I guess, affect how many investors getting into the market. Is this going to affect the acceleration of debt and, thus, house prices?Steve Yeah, it will. This is the classic thing. We have regulators that don’t understand dynamics I’ve just shown you because they’re mainstream economics trained and their training tells them to ignore private debt. So they’re not even seeing it coming. What they’re going to do now is a bit like they’re shutting the door while the horse is vaulting.

So the doors going to hit house valuations for insurance purpose the horse on the head. As well as the deceleration finally clicking in and causing house price falls. The regulators are going to make that happen more rapidly.So I expect them to panic at some stage and reverse direction because they don’t want to see house prices fall.

So these regulations will encourage further deceleration of mortgage debts and cause the slump in house prices.

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