Anyone else feeling a bit discombobulated at the realisation many of the events we have come to expect are now delivering the unexpected? I know that sounds a bit weird but that’s just my point. Conventions we have traditionally assumed to be concrete are no longer set in stone, with the result delivering more confusion on top of what we are already experiencing due to Covid.
You see, I don’t think everything should be attributed to the impact of Covid. Sure, there is no denying the pandemic has altered how we live, our expectations and our economy, but I don’t think it is the answer to everything.
Even taking Covid into account there are things going on that are contrary to convention. Just ask the Reserve Bank! Their expectation that wages would grow as a direct result of low unemployment numbers certainly hasn’t eventuated.
Then there’s the example of the previous Government resisting measures to boost wage growth based on an assumption higher wages would increase inflation. A reasonable expectation but as we are seeing, even without wage growth we know inflation is rising…. fast. The figures out on Wednesday showing a 1.6% increase in the June quarter, taking us to 6.1% for the year, are startling and very sobering.
And then there is the residential property market.
There is consistent talk about a housing shortage whilst at the same time we are seeing headlines declaring a decline in home values. How can that be? We all learnt the basic principle of supply and demand back in high school. How can that convention no longer be true?
The realisation we need to adjust to is the fact it’s just not that simple anymore. It probably never was that simple but the confluence of Covid, the war in Ukraine and the impact of climate change have reinforced that reality. There are so many variables that to expect a consistent outcome is as dangerous as it could be considered deluded.
We are reminding our clients of that every day. Every property, buyer, vendor, and tenant is unique. Every circumstance is different. We can discuss trends and expectations, but the Morton team of Sales Agents and Property Managers will always provide advice based on individual analysis of each unique circumstance.
That’s where we are at. The realisation that trends aren’t guarantees and conventions should not be expectations. I urge clients to come and talk to our team with an open mind. Be ready to expect the unexpected.