The ABS released figures on Friday showing Australians in May had $1.001 trillion in debt. This is up from $886 billion in May last year. Prime Minister John Howard is not concerned. He said, “I don’t think there is any particular magic in a particular figure, but when you talk …
THE DREAM of debt-free home ownership is slipping further from reach for the typical Australian family, as rising mortgages outpace growth in household earnings. Census figures were released today giving a snapshot of 2006 compared to 1996. In 2006, 33% of homes were fully owned. Ten years prior, 41% of …
The news on the US mortgage crisis just gets worse, with little indication the finish is near. Last night, figures released in the US, show house prices in the Standard & Poor’s Case-Shiller 10 city home price index fell 2.7% yoy. This is the largest decline since 1991. » Home …
The Bank for International Settlements has noted the risk of a 1930s-style economic slump has been heightened by “euphoric” markets tapping cheap global credit. The bank said the conditions which led up to the Great Depression of the 1930s and the Asian crises in the 1990s were reflected in the …
Last night it was reported inventories of homes for sale in the US hit a record 4.43 million, a rise of 5% for May. This now represents a 8.9 month supply. This is the biggest number of houses for sale since June 1992, the end of the last housing bust. …
The Age today is reporting new figures from the Reserve Bank of Australia showing income spent to service debt has risen to 11.9 percent in March. In contrast, three months earlier 11.6% of income was spent to service debt. Credit card debt is also at record highs of $39.6 billion. …
Bloomberg reports the worst is yet to come for the U.S. housing market. “We’re talking about a two- to three-year downturn that will take a whole host of characters with it, from job creation to consumer confidence. Eventually it will take the stock market and corporate profit” said PIMCO Executive …
» Housing recession gets worse – Bloomberg, 20th June, 2007.
In May we mentioned the story of Casey Serin who tried to make it rich in the Sacramento property market by ‘flipping’, only to come unstuck with the downturn of the US property market. He now tells his story on his blog at http://iamfacingforeclosure.com. The USA today brands Serin “poster …
The Advertiser today reports on a 34 year study showing that the rise and fall of the economy follows the housing market by 12 to 24 months. National Australia Bank chief economist Alan Oster said this has a wide economic impact, as people decide to either spend more or spend …
It looks like our real estate experts are trying to pump the markets again. In Adelaide, readers woke to an article in yesterday’s Sunday Mail, House Prices Set to Boom : HOUSE prices are set to jump up to 15 per cent – or an average $45,000 – in the …
Figures from Fairfax Newspapers indicate the amount of money Australian’s have withdrawn from Super to pay off debts have quadrupled in the past five years. Applications can be made to access superannuation in cases of severe hardship, such as to prevent foreclosure on your home. In 2001, there was 13,871 …
The UK daily mail reports Investment Bank ABN Amro has warned of housing slump on a global scale due to soaring borrowing costs. Families have taken on ‘unsustainably large’ mortgages, leaving them vulnerable to the sharp increases in bond yields and official interest rates seen in recent weeks, wrote economist …
More data out today about the housing crisis, this time in Queensland. Housing repossessions in Queensland for the last two years is up 88%, while the number of mortgage relief loans, an interest-free loan of up to $12,000, is up 166% in the past year. Labor treasury spokesman Wayne Swan …
According to accounts filed with ASIC, Australia’s two big mortgage insurers, Genworth and PMI had a large surge in claims by from home lenders. Lender’s mortgage insurance (LMI) is normally required for home owners borrowing over 80% of the LVR. Should the home owner default on the loan, the insurer …
As we get drawn closer to a federal election, the effects of Climate Change and the cost to the economy gets raised more and more frequently. Today Howard is scare mongering the voting public with the possible effects a 20% cut in emissions would have on the economy. “A 20 …
There is an interesting article in today’s AGE newspaper which talks about some of the issues preached here at whocrashedtheeconomy.com. JOHN HOWARD may claim to have no rabbit this election — or even a hat to pull one out of — but he does have an elephant. . . . …
The Australian Property Monitors released figures today indicating rents for houses have increased by as much as 15 percent in the last year. APM reported the biggest growth was in Brisbane while rents actually got cheaper in Darwin. “Mr McNamara says it is definitely a landlord’s market. “We do know …
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