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Australian Economy

Rising debt keeps Australian dream out of reach

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

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United States Economy

US Home prices fall at fastest rate in 16 years

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

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Australian Economy

Great Depression II looming

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

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United States Economy

US Inventory of homes for sale hits 15-year high

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.

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Australian Economy

Australians now floating in a record sea of debt

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.

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United States Economy

It’s a blood bath

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

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Australian Economy

Casey Serin is in Sydney – Australia.

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

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Australian Economy

Economy follows property by 12 to 24 months.

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

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Australian Economy

Super raided to pay off debt

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

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Australian Economy

ABN Amro fears world housing crash

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

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Australian Housing

Queensland’s Housing Crisis

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

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Australian Housing

Lender’s mortgage insurance claims up 500% for the year

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

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Australian Economy

Climate Change vs a Garrett Recession

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

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Australian Economy

John Howard’s white elephant

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. . . .

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Australian Housing

Capital city rental prices up 15pc

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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Australian Housing

Rate rise to cause Pandemonium in Housing Market : HIA

Following the release of housing affordability figures yesterday, the Housing Industry Association spokesperson Chris Lamont commented, “If you were to see interest rates increase by one or two per cent you’d see pandemonium across the market.” This is quite ironic, as earlier in the year the HIA was endorsing a

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United States Economy

U.S. home prices fall for first time since 1991

In the first year on year decline since 1991, the S&P/Case-Shiller index shows House prices in the U.S. has fallen by 1.4%. The S&P/Case-Shiller index is considered to be a better gauge of the housing market movements as it tracks sales on the same properties. Medium house price data can

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Australian Housing

Australian Home affordability hits the lowest level ever recorded

Following a 1.3% rise in house prices, the HIA/Commonwealth Bank housing affordability index has fallen 0.6% in March to the lowest levels ever recorded by the index, first introduced 23 years ago. “The housing affordability crisis shows all the signs of structural supply constraints; it is not part of some