Is Housing out for the Count?

IS HOUSING OUT FOR THE COUNT? CoreLogic data late last week sent headlines spinning. The announcement that Sydney house prices had declined 0.5% was a shock to all. This results in Sydney house prices growing by a miniscule 6.6%pa! Head of Research, Tim Lawless, called it a “significant turn of events”. But UBS economist George Tharenou saw it as much worse than that – proclaiming Australia’s housing boom is now “officially over”. “Australia’s world record housing boom is ‘officially’ over after a large ‘upswing’ of 6556% price growth in 55 years,” UBS economist George Tharenou. Now that’s a BIG statement. Sydney house prices have risen by over 70% since 2012 however, many are pointing to the material effects that APRA’s tightening regulation is having on the banks. Lawless went on to say: “Lenders have tightened their servicing […] 150

1987’s Black Monday, but what did we learn?

1987’S BLACK MONDAY, BUT WHAT DID WE LEARN? It was the stuff movies are made of. White knuckled brokers frantically screaming “Sell, Sell, Sell” – desperately seeking any offer they could. The problem was, there was no one willing to take the other side – not even a whimper of a “buy”. The tsunami of selling wiped a staggering 25% or $65B off the Australian Stock Market in one day. Stunned stockbrokers just stopped answering phones amidst the chaos that surrounded them. It was the era of the corporate raider. The quintessential Fat Cats, riding high and flushed with cash. Borrowed loot – anyone’s cash but their own. Christopher Skase had bloated Qintex. Rodney Adler was wrecking FAI Insurance and Bond had the trifecta, the Americas Cup, Cash and his memory……. Both […] 150