Home buying intentions hit record high!

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Says two year old index. Via CBA’s consumer intentions survey:

Home Buying Spending Intentions

  • Home buying intentions moved higher again in December and now sit at a record high
  • HSI readings indicate that the pick up in dwelling prices in H2 2019 may continue into H1 2020
  • The turn in the HSI is also a sign that the economic drag from falling residential construction may be nearing an end

Retail Spending Intentions

  • Retail spending intentions are fluctuating from month to month around an essentially flat trend
  • This flat trend remains a disappointing outcome relative to the stimulus applied via interest rate cuts, tax rebates and the turn up in dwelling prices
  • The zig-zag pattern indicates that the “Black Friday” event shifted spending from December into November without necessarily boosting spending over all

Motor Vehicles Spending Intentions

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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.