Dire warning for Aussie housing market

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We were warned house prices could drop by a whopping 32 per cent but they stayed firm. Now there’s a stark warning about what could happen next.

But amid the widely held stereotype of Aussies, there’s a part of our national identity that’s often overlooked: our nation’s collective obsession with housing.Location, Location, Location

In April, SQM Research concluded that if a worst-case scenario occurred for the economy and lockdowns lasted for six months across the country, a 30 per cent drop in housing prices was on the table. In May, the Commonwealth Bank followed, warning that a “prolonged downturn” could result in housing prices falling up to 32 per cent.A potential fall in house prices was forecast as the pandemic hit. Picture: Ian Waldie/Bloomberg News.

In co-operation with APRA, the banks allowed more than 493,000 mortgages to be deferred, with over 118,000 mortgages still deferred according to the latest data. To put these measures into perspective the entire Rudd-Gillard Global Financial Crisis era stimulus package was $51 billion spread over four years.

In the United States, analysts are already warning of rising American mortgage rates, as government borrowing costs begin to rise from record lows. In financial markets around the globe, market indicators continue to flash warning signs not seen since the peak of the ‘Dotcom Bubble’ almost two decades ago. As a sense of market euphoria and a feeling that investors cannot lose, due to central bank intervention continues to spread.LIFE AFTER THE KITCHEN SINK

 

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Wait till the housing grant is dropped. Plummet. Taxpayers cannot afford this gravy train.

scott morrisons negligence has put Australias future in the can

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