In conversations I have with subscribers, there tends to be a bit of confusion around why the forecast peak for the land cycle in Australia, is 2026.
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Why not 2025? Why not 2027?
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Additionally, it’s generally not recognised that the cycle has three peaks that we need to time and assess - and they all come at slightly differing times.
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(Note - The timing of the economic recession is consistent. Something I’ll go into further, in another post.)
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There’s the land price peak: More on this in a moment.
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There’s the stock market peak: Which can come prior to – or after the land price peak (in Australia.)
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In the 1980s for example, the stock market peaked in October 1987 before experiencing a sudden panic, commonly known as "Black Monday."
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It was one of the most significant financial events in modern history. Â
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Money continued to pour into the land market, however, pushing median real estate values vertical - peaking into the second quarter of 1990. Â
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In the 1970s panic – known to have been triggered by the OAPEC crisis, stagflation, but also, importantly, the undermining of the productive economy resulting from a significant real estate boom - the stock market peaked in early 1973.Â
The land market however, peaked in 1974.
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In the early 2000s boom, the stock market peaked in 2007 and didn’t hit its low until March 2009. The land market, peaked into the second quarter of 2008.