Here we’re talking about things like inflation and employment levels.

It seems obvious that periods of low inflation and high employment would see an uptick in borrowing as consumers look to spend the extra cash in their back pockets.

And as we know, when buyers fight over property purchases, values are only going to go upwards.


Rising consumer confidence increases consumer spending, especially on significant purchases such as a new home or an investment property.

In other words, a robust economic climate and rising property prices cause a "wealth effect” which leads to higher consumer confidence where buyers think it's the opportune time to spend their spare cash on a property.

On the other hand, low consumer confidence tends to slow down our property markets.

However currently, consumer confidence is low related to inflationary and economic concerns, yet our housing markets keep rising because population growth is pushing demand significantly higher than supply.

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Jason Gwerder
Thursday, 7 September 2023

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