You can be sure we’re in the midst of a spectacular real estate up-cycle when media characterises a 2.1% rise in house prices in a single month as “a loss of momentum”.
Much of the media reporting of the housing market is sub-standard. The steady flow of misinformation occurs because data sources are more interested in creating publicity than informing the public – and often publish negative analysis to boost their chances. The media people processing the press releases are not experts and often simply recycle the media releases as news articles.
So the media coverage resulting from CoreLogic’s report on June price trends claimed the market is losing momentum. It’s worth noting that the same happened in early May, because the average rise in values in April was slightly lower than March. There were headlines declaring that the boom was over. But then the May figures showed another big growth spurt.
Now the June figures are down (slightly) on May, therefore the market (apparently) is losing momentum. But read the main article below to see just how strong markets are, based on the CoreLogic figures for June.