A terrific piece today from Chris Joye of Coolabah Capital destroying the Lunatic RBA. Republished with permission.
The great Aussie housing crash is accelerating, and it is being driven by the fastest and largest interest rate shock households have faced in modern history. Sydney house prices have plunged almost 5 per cent since their peak only months ago, according to CoreLogic. Home values in Melbourne are not far behind.
The value of residential property in Australia’s two largest capital cities is declining rapidly, exceeding one percentage point per month, which signals double-digit losses over the next year (consistent with this column’s forecasts). There is further evidence that the Brisbane market is rolling over. Adelaide and Perth prices also look to be grinding to a halt.
