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Figures from Fairfax Newspapers indicate the amount of money Australian’s have withdrawn from Super to pay off debts have quadrupled in the past five years.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 …
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 …
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 …
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 …
Today’s Sunday Mail in Adelaide has an article titled What Rental Crisis, Some properties on the market up to five weeks. ADELAIDE’s rental crisis is over, according to real estate agents. Rental properties which earlier this year were being snapped up before being advertised are now are more than a …
Mixed results in the U.S. housing market for April. On Friday night, figures released for April showed sales for existing homes fell 2.6% to a seasonally adjusted annualised rate of 5.99 million. This was worse than the expected 6.11 million most economists were predicting and is the slowest turnover in …
In the OECD’s Economic Outlook, Issue No 81, the OECD has revealed house prices in the UK are 65% too high. The report compares the price of the average house with annual rental incomes which are now 65% greater than the historic average since 1970. Another measure is the house …
YouTube has am interesting Channel 10 news story on the foreclosure crisis surrounding California, and the United States in general. The report suggested the California suburb of Sacramento has been one of the hardest hit. In the first three months of 2007, 2% of homeowners in Sacramento defaulted on their …
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