Growth in housing lending continues to deteriorate, once again hitting record lows. Despite low interest rates, housing credit rose by only 4.5 per cent in the 12 months to December 2012, down from 4.6 per cent in the 12 months to November 2012 and the lowest growth in the 35 …
The Economist Magazine has just released its latest round-up of Global House Price indicators. According to the analysis, Australia’s house prices are 45 per cent overvalued on a price to rent ratio and 23 per cent overvalued on a price to income ratio: This is down from the November 2011 …
It is barely 11 days into the new year and mainstream media is being dominated by more subdued property forecasts this year. Over at Fairfax, Chris Vedelago is writing about the The slump we have to have which according to Chris is definitely overdue after Melbourne’s house prices surged nearly …
On Thursday, Treasurer Wayne Swan was forced to dump plans for a surplus and realign fiscal policy towards “jobs and growth” as collapsing tax revenues caused the budget to miss target estimates. Cash receipts to the end of October are now 3.9 billion behind budget estimates. With a fragile economy, …
Credit Suisse has expressed concerns about the Australian Banking Sector in its latest research report. It fears job cuts, payment shocks and declining house prices could cause downside risks to earnings and dividends as Australia’s households continue to de-leverage. According to the research, leveraged investors are struggling to make money …
Papers published today from the Property Market and Financial Stability conference held in August reveal Reserve Bank Governor Glenn Stevens opened the conference with remarks on if central banks should lean on asset bubbles before they get too big and out of control. Using momentary policy to put downwards pressure …
Gina Rinehart, the richest woman in the world, has over the past few years become concerned about the direction of Australia according to her latest article in the Australian Resources & Investment Magazine. “It goes back to something Australian’s used to understand well: almost every home understood that you had …
Woolworth’s & Fletcher Building Chairman, Ralph Waters is not surprised either that we have hit a bad patch. Yesterday, I expressed my view the current downturn was inevitable following a stimulus package designed to temporarily prop up an unsustainable, household-debt ridden economy. Mr Water’s told the Australian Financial Review the …
Treasurer Wayne Swan describes today’s 25 basis point cut to the official cash rate as “the early Christmas present that hard working Aussies deserve.” In a press conference after the Reserve Bank announcement, Swan told Australian’s “We’ve now had the equivalent of seven rate cuts over the past year and …
Only hope remains from the phantom housing recovery after the RBA released credit growth aggregates for October. Growth for housing credit has fallen to a positive 0.3 per cent, down from 0.4 per cent the month earlier. Over the 12 month period, housing credit is growing at just 4.7 per …
Near record low interest rates and talks of a property recovery has done little to instill confidence in a struggling residential construction sector. The Age’s Chris Vedelago today reports: Melbourne’s outer-suburban property market is facing a serious slump as distressed buyers and builders cancel one in every three new home …
The International Monetary Fund (IMF) has highlighted concerns about the concentration and interconnectedness of Australia’s big four banks in the most recent Financial System Stability Assessment on Australia. It reports Australia’s four major banks, The ANZ, Commonwealth, Westpac and NAB hold 80 per cent of the countries banking assets and …
The Australian Securities and Investments Commission (ASIC) has been forced to set up a taskforce to conduct surveillance on spruikers pushing the use of self-managed super funds (SMSF) to leverage up heavily into residential properties located typically in depressed markets such as Queensland. ASIC commissioner Peter Kell is concerned SMSFs …
Last Monday, the Federal Government released its Mid Year Economic and Fiscal Outlook (MYEFO), hoping growth in the residential housing construction sector would take over from our deteriorating mining boom and save Australia from pending recession. Household consumption remains solid in aggregate and there are tentative signs that residential building …
After Monday’s MYEFO, the ABC suggests the Federal Government could save $5 billion a year with a single chop. Watch the video segment, Suggestion for a surplus, on The Business here.
It was once the realm of Real Estate Agents to spruik that it was never a better time to buy, but with the residential construction sector in free fall, state politicians are picking up the pieces and taking over from where agents and bankrupt builders have failed. The South Australian …
After 21 years of economic expansion, Treasury is pinning its hopes on a bigger housing bubble to stave of recession after the mining boom. David Gruen, executive director of Treasury’s macroeconomic group told a Senate budget estimates committee, “In a couple of years, when mining investment does not contribute to …
On Tuesday it was revealed the South Australian Government will need to chop $1.4 billion from the state coffers by 2016 with $240 million coming from the Department of Health and Ageing. Eyes are now on the state government after three independent audits recommend the cutting of 308 staff and …
As expected, the official unemployment figures released by the Australian Bureau of Statistics (ABS) today showed a sharp rise in unemployment. According to the ABS, unemployment now sits at 5.4 per cent – a two and a half year high. The key driver to the increase in the unemployment rate …
Up, down or sideways? Debate has intensified about the future direction of Australia’s property market since the RBA announced a 25 basis point cut to the official cash rate this week. It’s not the first cut we have had. Australia has experienced five downward adjustments in monetary policy since November …
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