Australian interest rates Australian Property Featured Article

Will the rate cut reignite house prices?

Tuesday 3 May 2016

A straw poll of the stock market reaction is a likely “no” as CBA and REA Group are a bit but not tearing away and the concrete boots on McGrath seem only to be getting more heavy:

My own view is that any revitalisation in the market will be brief because:

Sydney’s goose is cooked by the investor bubble popping, the failing Chinese bid and the peculiar dynamics of its move-up ladder stalling as the pain spreads through the mortgage belt, and
Melbourne will continue to slow as Sydney does, as well as the fading Chinese bid and supply glut.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.