The Aussie house price correction is not “orderly”

Wednesday, 19 December 2018

It’s the latest refrain of the housing spruikers. That the house price correction is “orderly” and therefore under control. I’ll report and you decide.

If the correction were “orderly”, and therefore consistent with historical price falls, then at this stage it would already be flattening out instead of steepening markedly with Sydney now falling 3.4% per quarter and tumbling 20% annualised for the past few months with Melbourne falling 2.95% per quarter:

These rates of decline are consistent with oversees housing crashes.

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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.