Australia’s housing shrinkflation worsens

Thursday 12 December 2019

During the peak of the last housing cycle in 2017, MB coined the phrase “shrinkflation” to describe the peculiar situation whereby housing prices rise strongly alongside crashing sales volumes.

Australia’s housing market is experiencing another round of shrinkflation with dwelling values surging at the same time as turnover remains anaemic.

The latest evidence comes from CoreLogic, which shows that sales volumes are way lower than the same time last year:

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.