No signs of recovery

March 13, 2012 admin Australian Economy, Australian Housing 12

While the property lobby bangs on about a housing recovery this year, the Australian Bureau of Statistics today released its January housing finance figures showing the total value of housing finance fell 2.3 percent, seasonally adjusted. Most of the fall was attributable to a 7.1 percent fall in the value of loans provided to investors.

The number of loans issued for the purchase of new dwellings fell 6 percent and for the purchase of established dwellings, 1.2 percent. The number of loans for the construction of homes made a slight positive increase, up 0.2 percent.

ยป 5609.0 – Housing Finance, Australia, Jan 2012 – The Australian Bureau of Statistics, 13th March 2012.




12 Comments

  1. I disagree.

    It is possible that a “recovery” (re speak for more ponzi) could happen.

    Let’s look at the facts:

    1. Interest rates still have room to be cut. I know that banks are lagging behind with the RBA but it’s all about market signals.

    2. The government can still dish up the First Home Vendors Boosts. Labor is so dumb that it would not surprise me that they would borrow and increase the deficit to do this as we have an election coming up.

    3. We still have the untouchable sacred cow … Negative Gearing that is keeping the ‘correction’ from happening.

  2. Calling all unsuspecting punters. Wayne will flog the national credit card soon to provide some more incentive to draw out some more greater fools. You were warned about strange men offering you lollies as a kid!!!!!!!No different now, he is just wearing a suit.

    More stimulus measures will be needed to keep the Aussie Madoff Ponzi Housing scheme going.

    And Wayne is just so happy indebting this nation further into the abyss as it will bring Australia into the New World Order and one world government much quicker the worse our public finances become.

  3. House prices cannot be pumped up forever. What goes up, must eventually come down.

  4. You canno’t have infinite growth in a finite world. The more stimulus the wost crash will be. We need a slow deflation so people can adapted to the changing climate, not a fast one.

  6. Sceptic, maybe. First I’ll say banks aren’t stupid, people are. Then again, the way the world is heading, all seem to be stupid.

    Also consider, if the bank cares not for a defaulter, they will get their insurance and possible first home buyer’s grant. Its’ a way of making money I guess, in an environment were money is getting harder to come by.

    Good find for that article.

  7. Another First Home Vendors Boost for 2012 has to be on the cards. Where do I place my bet?. The housing market can already do with the levered monies realised from a new boost. It would assist gloomers bent on expensive housing and tax payer handouts.

  8. I don’t think that the govt will introduce a new fhvb. They know how in debt people are and the consequences of too much debt.

  9. @Sceptic. An interesting question Are banks stupid? Patently no they aren’t nor is government nor civil service in a narrow sense. I am not sure what to call the three deciders of our future path as they all are exquisitely intertwined bed fellows. It is we

  10. If we’re saying things are slow, I’d argue we ain’t seen nothing yet. Went to two Melbourne inner auctions today and watched both sell for $70-100K above the top end of the quoted price. A friend also sold before auction, three weeks into a campaign for well above the top end. I believe we haven’t even scratched the sides yet. The RE, building, retail, tourism and every other lobby group that holds its hand out for Government largesse are also adept at spruiking sob stories to force the RBA’s cutting hand.

  11. “Interest rates still have room to be cut. I know that banks are lagging behind with the RBA but it

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