There are some bank bears out there:
The recovery in property prices, led by surging population growth and a severe housing shortage, could prove short-lived if unemployment rises and the Reserve Bank keeps the cash rate high, economists warn.
…“I am worried that the recovery in property prices is a false rally,” said Warren Hogan, economic adviser at Judo Bank. “The Australian housing market is yet to be stress-tested by a genuine slowdown in economic activity and softness in the labour market.”
…Bob Cunneen, chief economist at MLC, doubts that this year’s rebound in property prices will last, and says the strong demand and constrained housing supply have overwhelmed the impact of higher interest rates and poor housing affordability this year.
…Stephen Anthony at Macroeconomics Advisory is also sceptical about the robustness of house prices.
…Sean Langcake, head of macroeconomic forecasting at Oxford Economic Australia, also expects property prices to dip as more stock comes on to the market.
Yawn. I don’t think so.
Alboflation is rampant in immigration flows. The housing shortage is immense. Rents are tearaway.
Albo’s globalists have established a new and very large diameter pipe of migrant flows from India. They have used an unprecedented (and insane) equalisation of labour qualifications and generous work rights to do it.
Now, Canada is on the nose with India owing to the Sikh leader assassination blowback so those flows will get even stronger.
Even a moderate pullback in numbers will do nothing to slow housing.
On the supply side, housing construction is stuffed by the cost of materials and labour as infrastructure runs wild trying to keep pace with Alboflation.
We may see a reprieve of slower house price rises for a while assuming a global recession arrives, which is my base case. But any falls will be modest.
Moreover, such an outcome, especially one that also delivers a Chinese property bust crash in iron ore, will lead directly to deep interest rate cuts.
Like in 2015, house prices will immediately be off to the races.
This is the primary, secondary and tertiary reason for Alboflation. It is not vibrancy, nor multiculturalism, nor economic benefit, nor populate or perish.
It is house prices for Albo and his cronies to get rich and buy Boomer votes.
I feel very sorry for young people who support a system designed explicitly to make them homeless.
