So what will happen this year

Over the last couple of weeks I’ve been fascinated to read all the predictions for the economy and specifically the property market for 2012.

If they’re to be believed over the next twelve months we are guaranteed to see property prices increase, unless they decrease and that will happen only if they don’t stay flat.

Yes.  It’s that clear.

The excuse for such diversity of opinion is attributed to the uncertainty engulfing international economies.  What will happen in Greece?  What impact will that have on the rest of Europe?  Whatever those unknowns turn out to be could impact Australia

But really, is this year any different?  Can we ever predict the future with confidence?

Last year should have been far better than it was for property.  The economics were good and improved as the year progressed but I don’t think anybody realised the effect uncertainty would have on confidence of domestic buyers and sellers.

So what will happen this year?  I’m not going to try to predict it but I did like the opinion of Jessica Irvine in the SMH.  She suggested the ‘Goldilocks economy has a few tricks in case bears turn nasty’ and I think her analysis is right.

‘If it’s good, it’ll be moderately good.  If it’s bad, it may be horrid.’  No it isn’t definitive but I think it’s true.

But just so I don’t end my first post of the year on that scary note I’d like to point out that Jessica does finish by saying ‘there remain reasons for optimism amid the gloom.’

I agree, so let’s get on with it.