Downsizing might be a good idea?

Imagine if you had a real estate agent sitting on your front fence every morning quoting the price of your house!
It would be amusing, today this house is down 1.1 % and I expect it to fall tomorrow following a increase in the unemployment rate announced today by the Australian Bureau of statistics.
Would you sell your house based on the above info?

We would rightly laugh at this, however we put up with this sort of crap from financial news channels every day when they talk about the stock market!
I think this may be the markets biggest problem, too much analysis.

So lets look at Real estate, I often hear from the my peers, real estate prices double every 7 to 10 years, Really?
If that was the case after purchasing my house 10 years ago, my home should be worth about $1.3 Million, I don't think we would get half that, in fact I think if we sold now we would be behind what we paid in 2005.

But how accurate is it, so I went looking for some data.

Attached table over the last 5 years from RP Data, what lies ahead for housing prices in 2020/

Looking at the above its very much a story of Sydney vs the rest.

Certainly regional city's performance are probably closer to Hobart's and Canberra's figures.

With record low interest rates you would have thought we would have seen prices in regional cities and towns grow as well.

However I think they are forgetting about one major problem, wages growth is the lowest in a generation,
I don't think wages have grown enough to sustain the current prices,  let alone see any growth.

Previous growth was driven by inflation, not much of that about!

And with low oil prices and little wage growth, hard to see anything on the horizon to cause it.
So the next 5 years are probably going to be more like the last.

I don't know how young people do it, so i think a softening in values is far more likely than growth, should we see even a small increase in interest rates.

And people might find its more like 17 years to double their money at least in regional Australia.

So maybe we should sell, probably not a big risk in downsizing and putting some extra cash into the stock market, 17 years worth of dividends and some capital growth might be a better legacy to leave than a big house that is hard to sell as the baby boomers all start downsizing.

Of course the Chinese could be a bigger influence in our market that we think, hard to get numbers or info that not emotive, but could be a big part of Sydney's Boom? Chinese wall of capital buying up Australian properties

And I guess if they wanted to buy us all, their children could do it with their pocket money!