They were really too dependent on China in my opinion and they never seem to acknowledge it... There export sector is taking a hit as we speak, Housing been declining since end 2017 and it's reaching crisis point considering all the wealth people tied into it, inflow of foreign money from China is dramatically slowing down as you can see with Australian GDP entering a recession, while unemployment is at its lowest point in long time... To top it off, there Subprime Mortgage Industry is about to obliterate there economy, consumer spending is gonna grind to a halt anytime now. I think they need to cut rates by 50 bps in July, and QE by September at latest, to salvage destruction a bit. Interesting development in Australia as we speak, speculation and greed gone ultimately wrong, they were headed into a recession without the Subprime issue but the sheer amount of Interest Only Subprime Mortgages that is in the Australian Market will make it doomsday
%% Hopefully it will not be as bad as in USA; when they forclosed after a few months late payments, they sell it dirt cheap + sue for the balance...............................................
House prices across the country are falling even faster than they did during the Global Financial Crisis amid signs the Reserve Bank will consider an interest rate cut if the jobs market starts to deteriorate. The Australian Bureau of Statistics on Tuesday reported house prices across the nation's capitals fell by 2.4 per cent in the December quarter to be down by 5.1 per cent through 2018. In dollar terms, almost $270 billion has been wiped from the value of the nation's housing stock since March last year with $179 billion gone from NSW homes. Victorian home values have fallen by $104 billion. It eclipses the worst annual falls recorded during the GFC when prices edged down by 4.6 per cent in early 2009. Sydney prices dropped by 3.7 per cent in the quarter to be down by 7.8 per cent through the year. It's the worst performance in the city since the bureau started collating figures in 2003 and the sixth consecutive quarterly fall. Melbourne prices fell by 2.4 per cent in the quarter. They declined by 6.4 per cent across 2018 with prices down for four consecutive quarters. Bureau chief economist Bruce Hockman said the Sydney and Melbourne markets were being hit by a range of factors. "While property prices are falling in most capital cities, a tightening in credit supply and reduced demand from investors and owner occupiers have had a more pronounced effect on the larger property markets of Sydney and Melbourne," he said. The decline was not just confined to the nation's two largest cities. Prices were down by 1.1 per cent in Brisbane, by 1 per cent in Perth, by 0.6 per cent in Darwin and by 0.2 per cent in Canberra. The last time so many capital cities recorded a fall in prices was in 2011. Minutes of the Reserve Bank's March meeting, at which official interest rates were held at 1.5 per cent, reveal the RBA board is growing increasingly concerned about both the possible flow-on effects of falling house prices and the way key economic indicators are moving in opposite directions. Unemployment is at 5 per cent, including a 40-year low rate of 3.9 per cent in NSW, but overall GDP has suffered its worst back-to-back quarterly reads in 13 years. Some forward indicators suggest the jobs market may be softening. New figures due out on Thursday should give some insight into whether employment growth is continuing with some analysts tipping a drop in the number of working Australians. https://www.smh.com.au/business/the...nding-across-the-country-20190319-p515eb.html
https://www.smh.com.au/politics/fed...-mortgage-as-debt-climbs-20190617-p51yhg.html A growing number of Australians are falling behind on their mortgage, hit by weaker house prices and high levels of debt as more signs emerge that consumers are leading the economy down. Ratings agency Moody's on Monday reported that the number of delinquencies on residential mortgage-backed securities rose through the March quarter, with 1.58 per cent behind on their repayments, up from 1.48 per cent in the prior March quarter. Andddd that's with fake moody's accounting that continually adds new RMBS issuance into the older ones to dilute delinquencies, also lying about the real reason which is Interest Rate Only Mortgages and ARMs turning into Interest and Principal Mortgages... Gonna be some insane deals in Australia by mid 2020!