Originally Posted by
amk
The situation now is unique, diff from 1997.
There is massive liquidity now. Low rates is a given for at least another 3yrs.
However euro crisis is causing a recession risk, even when US is starting to recover.
In SG with all the CMs, secondary market is practically dormant since Jan 2011. The only movement is in new sale. All these pties sold in 2011, by 2013 they are about half built. With such low interest and SSD, there is no reason firesale will happen as long as the job market did not crash with massive unemployment.
My view is there will be prolonged period of inactivity as long as interest rate is low. Price will be stagnant or slightly down, but not crash.
The real danger is not our economy, but how euro crisis will pan out. If euro collapses, it will be 1930 style recession. However personally I do not believe this will happen. Too much is at stake. The west will eventually borrow its way out.