Australia’s slowing housing market has intensified concerns about a broader economic downturn, with falling home lending, weakening property prices and subdued auction results raising fears of recession.
NAB reported home loan applications fell 15 per cent in the June quarter, while lending values dropped nine per cent as higher interest rates and the federal government’s negative gearing and capital gains tax changes weighed on investor activity.
EQ Economics managing director Warren Hogan warned the Reserve Bank would only be likely to cut interest rates if there was “calamity in the economy”, arguing the housing market was “going from bad to worse”.
Sydney and Melbourne recorded quarterly house price declines of 3.2 per cent and 2.6 per cent respectively, while growth in Brisbane and Perth slowed sharply.
NAB also revealed an increase in loans classified as “on watch”, signalling potential mortgage stress, although the bank said its business customers had continued to show resilience despite challenging economic conditions.
Image credit: Tom Rumble
As expected when you have a Labour govt…
Australia’s Liberals are a complete joke too. I lived there when they were in office, one bad decision after another. Anyone voting mainstream is getting much the same thing, as is the case here in NZ.
Yes, thats definately the reason. Not that economic tides are turning and those areas are overvalued.
Nah, most definately because of one or the other flavour of politics
Behind the church parliament and its party favorite of the day, sits the real power pulling the economic levers, the Central/Reserve Bank.
And why would the economic tides be turning as you put it. An act of magic, perhaps? Or maybe dismal policy and bad decisions that have undermined Australia’s economy? Surely not, right?
But hey if you want yo go on believing the political mainstream has made your life better, in spite of a mountain of evidence to the contrary, have at it.
The economic tide has turned because Australia looks to have reached peak greed in the housing market, like NZ did after the sugar rush of free money in 2020/2021 from covid and FOMO from the unwise. There is only so much the middle income folks can pay to buy a house. And then, after that, there is only so much landlords can ask for rent when there is tonnes of them trying to beat the bank
Like I said don’t matter what political flavour, ans, I was replying to the initial Ftp post
The sooner Australia moves beyond Labor and the Liberals, the better of it will be in very real terms….
Luxon is receiving the same instructions as Albo, equally traitorous.
The love of money…
Pull my heart strings
This is why the West is falling and the Third world has shown up to pick the bones clean.
We have let our ruling class build a economy around property speculation, it is a economy built around the bank, banks are run by the global financial system, the global financial system is run by the (((you know who))) the housing bubble is just a wealth extraction system, we have been skimmed at the top and now we are being skimmed at the bottom.
We need to expel the Third world that are here carpet bagging on a visa and we need to expel the money lenders and make all banks State owned enterprises with the State controlling 51% of the banks.
But the banks own the politicians, who are the state. Catch 22 my friend, not that I don’t agree with you if we had honest people in office and not mostly grifters.
You get what you vote for.
Thanks Boomers 👍
Australia just like New Zealand had an economy built on the shortage of accommodation. I call this an inflation economy. Some call it a house of cards.
Other countries manufacture products and sell them. China has perfected this.
New Zealand produces dairy, fruit and food. NZ also had a reasonable tourism business.
These are the things government has relentlessly buggered up.
1. Extreme and unnecessary overspending lead to extreme taxation. There is certainly no money in the local economy for people to buy goods and services. This comes in all forms, All the transaction taxes. From employment to property, goods and services.. but there are hidden ones. For example excessive port fees. The result is not many cruise liners come here.
2. Extreme regulations with serious financial consequences. This affects all employer’s, Investors including landlords and businesses owners. They spend more of legal fees than ever before. This crap must go.
3. Racist, Maori privilege. A lot of this has ended in government. The rest of it has to go. One nation, one set of rules for all. One people.
4. Family court redistribution of wealth. This area is one of the most serious injustices on the planet. Its consequences include excessive dwellings and all the public infrastructure from electricity to roading, appliances needed. Excessive legal fees. The result is clear. People can’t safely get into a relationship without serious consequences if he or she want to rip them. The birthrate is nowhere near replacement. In a few short years this will affect school rolls, repopulation and business.
New Zealand’s population is declining at such a record rate these matters must urgently be addressed.