It’s the end of the month again and time for another update from the RBA on private credit aggregates. The trend continues with another all time record low for growth in annual housing credit growth, this time down to just 4.4 per cent. On a monthly basis, there was no …
S&P has reaffirmed Australia’s AAA credit rating for now, but has warned a number of vulnerabilities exist. One vulnerability is a housing correction due to the “substantial [household] debt mainly due to elevated property prices” in Australia. The report indicated “The sustainability of high household debt levels has not been …
A fortnight ago, we heard from the Prime Minister Ms Gillard taking about how “many Australians miss those days when they could spend all of their income, see wealth increase through ever-rising house prices, and through easy credit, borrow against the house again to spend more.” Last Friday, it was …
Influential businessman Dick Smith is one of many who calls Australia’s property market a Ponzi scheme. He told the weekend Australian Financial Review in 2011, “I suggest to people who have big borrowings on a house, it’s all a Ponzi scheme.” A Ponzi scheme provides returns to investors from money …
A private survey on unemployment from Roy Morgan estimates 10.9 per cent of the Australian workforce was unemployed in January 2013, up 1.3% over the past month and now sitting at the highest rate since January 2002. In other news, Retail trade figures released by the RBA show Christmas trading …
Emergency low interest rates are starting to kindle a fire under Australia’s lethargic housing market prompting vested interests’ to warn we are at the bottom of the housing cycle and on the cusp of a new housing boom, encouraging punters to get in early. Official data from the Australian Bureau …
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 …
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