Property buyers aren’t in such a rush to get onto the market anymore. The truth is that the property market is slowing…and prices are falling.
The Australian economy set a world record in March 2017. Recession free for nearly 26 years. Around the same time, Australian households also established a record…the most indebted in the world.
The Australian economy was a major beneficiary of China’s decades long economic transformation. Chinese demand for resources led to a mining boom that peaked in mid-2012.
When the mining boom collapsed, the Australian economy was thrown a lifeline by the RBA…in the form of ever lower interest rates. Australians were encouraged to borrow to keep GDP growth positive.
While this has worked to an extent, it’s also lead to Sydney and Melbourne property markets becoming amongst the most expensive in the world.
Australian Economy News, as it comes
In Markets & Money we work to connect the dots on the Australian economy to give you a clear picture. And part of that picture is connecting record economic growth with record debt, and record home prices.
Our economic winning streak is in record breaking territory. The last recorded recession in The Lucky Country ended in June 1991. But that’s not how life should work.
Fantasy Island is a paradise in the Pacific Ocean. The island’s GDP output is $500k. There is no debt. One day, a fellow calling himself Charles arrived on the shores of Fantasy Island.
Foreign investment remains a contentious issue. CKI Group’s latest bid might once again come into the national spotlight. But what is it that international investors see that local investors don’t?
Two avocados for $4 dollars. Bargain! Want to hear about another Australian staple that is also looking at lower prices? Property.
You may have noticed that things have been pretty good lately. The economy is booming. Unemployment is down. And market sentiment is, generally, pretty cheerful. Overall, Australia has been a place of sunshine and financial…
Having had so many years without a crisis has meant that Australia is one of the few countries in the world still able to offer a range of opportunities. But, there are worrying signs.
Death and taxes are the only two certainties in life. They’re the un-pleasantries that you can always count on. But usually, those two things are mutually exclusive from one another. When you’ve left this earthy…
Australians have a love affair with property. It’s one of the more popular income generating investments on the ASX. You’ll know them as Real Estate Investment Trusts (REITs).
You would be surprised how many people invest based on recent past performance, projecting the present into the future. Economists even have a name for it: extrapolation bias.
Markets cannot completely collapse, whilst everyone is expecting one. Markets just don’t work like that. Markets can only collapse when everyone is fully invested and there’s only blue skies ahead.
A slowdown on the property market could mean we see an end to the wealth effect. What’s the ‘wealth effect’?
Is it possible to work for 45 years and then retire for 35 years? This is the debate society is going to have (in earnest) in the not-too-distant future.
This ‘Afterpay for real estate’ scheme is the latest initiative from sellers to try and breathe life into a deflating property market. Lenders and developers are getting creative with incentives as the property market slows…