United States Economy
New-home sales plunge 8.3% to seven-year low; Median sales price down 7.5% in past year, biggest drop in 37 year
» New-home sales plunge 8.3% to seven-year low – Market Watch, 27th September 2007.
Australian Economy
Aussie debt at historic levels
The world economy is booming, but it is nothing compared to the growth in credit when looking to the big debtor nations today. Australians are in debt to levels never before seen in the history of credit, with the only two periods that come close – the 1880s and 1920s …
Australian Economy
Aussie debt at historic levels
Australians are in debt to levels never before seen in the history of credit, with the only two periods that come close – the 1880s and 1920s – followed by major depressions. » Aussie debt at historic levels – The ABC, 25th September 2007. » Household debt likely to rise, …
Australian Housing
Tentants left homeless as more landlords default on their loans
The impending mortgage crisis is affecting not only property owners with a mortgage. Tenants who have never missed a rental payment and who keep their homes in tip top shape are being given kicked out, in some cases with a little as a few hours notice. TENANTS are being forced …
Australian Economy
Mortgage Meltdown
The ABC’s Four Corners has just aired an hour report on the sub prime mortgage disaster. The transcript can be found here. It features an interview with Robert Shiller. You can watch the extended interviews and read other resources here : » Four Corners Mortgage Meltdown Extended Interviews & Further …
United Kingdom Economy
Northern Rock, the Lastest Victim.
Customers of the latest sub prime victim is with drawing £9,600 a second in fears the bank may collapse. £2.5 billion of 8% of deposits have been withdrawn on Friday as customers queue en mass. » Panic grips Northern Rock savers for second day – The ABC, 15th September 2007.
Australian Economy
Loan defaults up almost 30%
Loan defaults rose by almost 30 per cent in the last financial year with failures to pay the bills on time up in every Australian state and territory, figures from the nation’s biggest credit check firm have revealed. And economists say consumers who haven’t experienced a recession are upping their …
Australian Housing
Housing starts fall in ‘dismal’ NSW market
Housing starts for Australian dwellings fell 4% in the June quarter. This was significantly greater than what most economists were expecting with a consensus of 0.5%. However NSW recorded much worse results. For the June quarter, Housing starts in NSW was down 20%, reaching the lowest starts since the early …
Australian Housing
Australian housing finance plunges
Housing finance commitments for owner-occupied housing fell 4.1% in July. Total housing finance fell 7.4% in the same time. Economists had only expected a two per cent fall for housing finance commitments for owner occupiers. » Australian housing finance plunges – Sydney Morning Herald, September 6th 2007.
United States Economy
July pending home sales index falls 12.2%
The U.S. housing market showed signs of major disruption in July, with a 12.2% monthly decline in contract signings on existing homes — the largest drop since the pending homes sales index started in 2001, the National Association of Realtors reported Wednesday. » July pending home sales index falls 12.2% …
United States Economy
Can the Mortgage Crisis Swallow a Town?
Last year, there were 1.2 million foreclosure filings in the United States, up 42 percent from 2005, according to RealtyTrac, a firm that analyzes such data. At current rates so far this year, RealtyTrac expects foreclosure filings to hit two million in 2007, or roughly one per 62 American households …
Australian Economy
Subprime crisis to ‘hit world economy’
Global economic growth will take a hit as a result of the US subprime mortgage crisis, says the chief executive of Deutsche Bank, Germany’s biggest bank. » Subprime crisis to ‘hit world economy’ – The Age, September 2007
United States Economy
Confidence falls sharply in August
The consumer confidence index fell to 105.0 in August from a revised 111.9 in July, which was a cyclical high, the private economic research group said. » Confidence falls sharply in August – Drop biggest since Sept. ’05 – Market Watch, August 28th 2007
United States Economy
US Home prices fall record 3.2% nationally
Last night, the Case-Shiller index showed US house prices fell at a faster rate in the 2nd quarter. It marks the largest decline in house prices year on year in the 20 year history of the index. » Home prices fall record 3.2% nationally – Market Watch, 28th Aug 2007.
Australian Economy
One day the biggest fall since Sept 11th, the next day the biggest fall since Tech Wreck 2000
With fears of a credit crunch coming to haunt the economy, the Australian All Ords fell 311 points or 5.4% during trade yesterday, only to make a good recovery in the afternoon. With records for the biggest fall since Sept 11th broken several times in the past month, yesterdays fall …
Australian Economy
Another Day, Another Big Fall on Global Markets incl. the RAMS Home Loan Group
These days it seems everyday is another big fall caused by sub prime worries and the impending credit crunch. The Australian All Ordinaries Index fell another 2.75% or 181 points today to 5,801, lead by big falls in the US markets overnight. The Dow Jones fell 207.6 points to 13,028 …
Australian Economy
All the experts were wrong on subprime
THE Federal Reserve Chairman, Ben Bernanke, was wrong.So were the US Treasury Secretary, Henry Paulson, and the chief executive officer of Merrill Lynch & Co, Stanley O’Neal. The subprime mortgage industry’s problems were contained, they all said. It turns out that the turmoil was contagious. » All the experts were …
Australian Economy
Sub Prime Fears cause Stock Market Plunge
The Australian Stock Market took the lead from Global Markets and with the S&P200 plunging 3.7%, the biggest one day fall since 7/11. “Cash is king at present, with the market continuing to respond very directly to offshore volatility as the fall-out from sub-prime credit crisis spreads,” MFS chief executive …
Australian Economy
RBA increases rates by 0.4% to 27.2%
In the lead up to the last federal election, one of Prime Minister Howard’s slogans was Keeping Interest Rates low. Since then rates have risen 5 times. Today the RBA increased interest rates 0.25 per cent to 6.50. But does Interest Rates really matter, or is the actual size of …
Australian Economy
Housing affordability plummets: report
What will come as no surprise to many, the Urban Development Institute of Australia says a report it just released shows housing affordability has worsened dramatically in recent years. It charts the affordability in 70 centers in Australia. In 2001, 96 percent of those centres were considered affordable, today it …