Is the media creating the current property downturn? | PROPERTY INSIDERS [VIDEO]

We’re suffering a crisis of confidence and in my mind the media has a lot to answer for.

Is the media reporting consumer sentiment or is the media’s negative sentiment creating a crisis of confidence in property?

You can’t buy a paper or go on line without a headline warning us that property Armageddon is around the corner.

Sure, there’s a credit squeeze, but the average consumer has lost their confidence because of the media.

And the media keeps looking for experts chasing a headline.

Watch this week's Property Insider video as Dr. Andrew Wilson chief economist at  My Housing Market and I discuss this.

Watch us discuss:

• While the fundamentals are relatively easy to quantify and examine – consumer behaviour is the X factor – hard to predict
• Worse with the 24/7 news cycle
• Why the media loves hotspotting – it's a bit like stock picking
• The market turned around last year after that famous 60 Minutes program in October last year. Martin North gave 4 scenarios but they honed in on the worst scenario
• Many of those who make predictions don’t have skin in the game – or come from a general economic or stock market background not property
• Steven Keen got a lot of publicity
  • in 2008 in midst of GFC said property prices would fall 40% - lots of news coverage – prices fell 5.5% 
  • Had to walk 200km from Canberra to Mt Kosiosko wearing a T shirt saying: "I was hopelessly wrong on home prices! Ask me how.
  • Said he got the timing wrong – he said prices would fall 20% in 2011 and the market boomed – but got lots of publicity
• Some say I’m  permanently optimistic about the property markets – but that’s not correct – I’m realistic – in fact I’m pessimistic about more locations that I think will do well – only 1% of properties are investment grade. 10 million properties in Australia avoid, regional, main roads most suburbs
• Perma Bears - Doomsayers make money from their predictions
  • Harry Dent is back again in Australia
• Confirmation bias – you read things to confirm your preformed beliefs
• The rabbit hole of Google – you’ll keep reading articles that confirm what you just read.

About Michael Yardney Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media.