East Coast residential property continues to fall as credit tightens, but in this interview, Charlie Jamieson, CIO at Jamieson Coote Bonds, warns that property investors could be about to make matters worse by becoming forced sellers in a falling market.
Charlie outlines the mechanics of margin calls and forced selling in this short interview, and told us that: “…not a lot of people have that excess liquidity readily available, so they need to sell and they need to sell in a hurry. And if this happens en masse, clearly you can see the death spiral effect occur very quickly”. He also flags a catalyst in February next year that could see credit contract further still.
