This will seem simplistic and controversial but it’s time we faced up to a demographic reality, for our aging population an unavoidable psychological state has become overwhelmingly prevalent, the cup is now half-empty. Journalistic commentary via the major financial media sources can be split into two camps the fear camp, predominantly those representing the baby-boomer generation, and the optimists, being the Gen X, Y and now Z’s. As one commentary we crossed recently put it, it’s created a financial situation where those in the baby-boom generation (the holders of majority of major assets) are developing a concentrically smaller mindset in terms of wealth whilst those in the younger generations simply do not have the financial clout to overcome a disproportionate distribution of assets. In simple terms there are those that can’t afford to sell and those that can’t afford to buy. An economic impasse is the consequence. Can the reality of this demographic psychology be ignored? Of course there are exceptions to the journalistic encampment rule (Ross Gittins of the SMH we are looking at you). However, true innovative thinking, be it financial or social, won’t flourish when oppressed by ageing conservatism. There is no place for global economic naivety, in going on five years Europe has failed to adequately address it’s problems, America’s recovery remains tentative and China’s growth has necessarily slowed. But our own growth and resilience as an economy is being hampered from within. Is it time the older generation reassessed their stance and question their legacy? Is this necessarily a new phenomenon or magnified by our populations weighting? Should we be surprised that the middle-class is predicted to continue to decline? Of course time will tell.
For baby boomers ‘fear’ wins.
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Yesterday’s much publicised May housing figures for Sydney supplied by RP Data and handled as delicately as only our media know how (Ed: The only thing Channel Ten had missing was a reference to the forthcoming apocalypse as predicted by the Aztec calendar) deserve some greater review. Thankfully Cameron Kusher has provided his take on the figures noting “the biggest house price falls in Sydney last month were at the prestige end (down 6.4 per cent), which dragged the rest of the market lower. The most affordable 20 per cent of houses actually rose slightly, while the middle 60 per cent fell by 0.4 per cent.” Thanks for the clarification Cameron. 
Peter Chauncy from McGrath has been left stunned (Ed: and no doubt created some very happy vendors) when on the fall of the hammer the conservation zoned single level residence in 
The 
Affirmation from preliminary indicators on last weeks report for Sydney auction results with clearance rates confirmed as the best for 2012, so far…. APM indicates a clearance rate of 61.8% (Ed. not bad in any market). Price growth seems to be teetering and the onset of winter will be challenging for some. Here’s to seeing the result spread nationally to validate a turning point for all. 
Positive signals across the board supporting our more recent posts on market activity in Sydney and Melbourne. Over the weekend Sydney recorded a 61.8% clearance rate from 359 properties whilst Melbourne recorded a clearance rate of 63% out of 591. 
Today’s 
Don’t look now but this weekends auction results could be surprising. Traditionally cooler weather spells subdued results but our on-the-ground sources (thanks to the Harcourt Hills boys) as well as 
Interest rate changes no longer have an impact on buyer decisions. That’s the underlying theme being expressed by a number of commentators after yesterday’s RBA surprise slashing by 0.5 points. 
Interesting 
PROP2020 