Houses and Holes


OECD: Australia must prepare for house price “hard landing”

From the OECD today: The latest OECD Economic Survey of Australia, to be released on Monday 10 December, assesses the continuing robust growth of the Australian economy, as well as the challenges to ensuring sustainable and more inclusive growth against a backdrop of globalization and technological change. The Survey discusses how Australian can limit financial sector risks,


Politico-housing complex implodes

It is a laugh a minute now for the politico-housing complex. First up the RBA, which “economists” say was actually bullish last week: Economists believe the market misinterpreted comments by Reserve Bank of Australia deputy governor Guy Debelle, whose speech on Thursday was received as dovish but in fact was “frank” and consistent in substance


Property locusts swarm FHBs towards falling knife!

There’s a locust plague at News: Buyer’s agent Nick Viner believes now is the time to buy in Sydney and Melbourne, with many discounted premium properties available with minimal competition. “This environment is the absolute perfect time to buy because you’ve got more time to consider your options and there’s more choice in terms of


Shorten again endorses negative gearing reform

Via the AFR: As Sydney and Melbourne house prices continue to fall, Mr Shorten signalled that an originally planned July 1, 2019 start date could be deferred until 2020. He said Labor remained committed to its three-year policy of reforming negative gearing to make the system fairer for first-home buyers against investors who now receive


Bull trap banks pick up yield bid

AUD is still struggling through the morning: Bonds are paring gains but yields are now trending down nicely. More to come: ASX is hanging on at the cliff’s edge: Dalian has opened with a minor bid: Big Iron likewise: Big Gas is hopeful of an OPEC rescue. I am not: Big Gold has a Fed


US jobs preview

Via Calculated Risk: On Friday at 8:30 AM ET, the BLS will release the employment report for November. The consensus is for an increase of 190,000 non-farm payroll jobs in November (with a range of estimates between 140,000 to 220,000), and for the unemployment rate to be unchanged at 3.7%. Last month, the BLS reported


Coalition gives workers one last kick in nuts as it exits

As we know, Aussie households are mired in an historic income recession: But it’s not enough for the Coalition. It wants even less money for workers, to wit: The Australian can reveal that Jobs and Industrial Relations Minister Kelly O’Dwyer has ­appointed six new deputy presidents — including four who have worked directly for employer groups


Election investment freeze begins

It’s a long way out but not soon enough, via The Australian: Two of Australia’s biggest energy companies say they will delay investment in new generation capacity that could help drive down prices until there is more certainty around the direction of policy, after Scott Morrison’s “big stick” legislation to break up retailers who charged


Australian construction PMI pukes lower

Goodbye Botox Boom: Construction sectors: Engineering construction (54.0 points trend) was the best performing sector in November, recording its 21st consecutive month of growth on the back of on-going strength in publicly funded investment in large-scale infrastructure projects. At the other end of the scale, apartment building activity (31.0 points trend) contracted for an eighth


Australian mortgage stress hits new all time highs

Via Martin North: DFA has released the November 2018 mortgage stress and default analysis update. Across Australia, more than 1,015,600 households are estimated to be now in mortgage stress (last month 1,008,000). This equates to 30.9% of owner occupied borrowing households. In addition, more than 22,500 of these are in severe stress. We estimate that


Australian dollar smashed by Huawei arrest

Via the ABC: Canada has arrested Huawei’s global chief financial officer in Vancouver, where she is facing extradition to the United States on suspicion she violated US sanctions against Iran, reports say. Meng Wanzhou, who is one of the vice chairs on the Chinese technology company’s board and the daughter of company founder Ren Zhengfei,


Scummo still stinking up Berejiklian

Via Domain: When NSW Opposition leader Luke Foley spectacularly resigned from Parliament amid a sexual harassment allegation, Labor strategists were bracing for a hit. …Yet Labor has not only recovered but is ahead. The latest Herald poll, conducted across the state on the weekend, has Labor leading the Coalition 51 to 49 on a two-party-preferred