Treasury and the Reserve Bank have warned falling house prices are "sagging" the economy, as languid household consumption forms the sharpest domestic threat just days out from the start of the federal election campaign.
"Sentiment over the course of the week showed a clear boost, with sentiment amongst those surveyed post-budget 7.7 per cent higher than sentiment amongst those surveyed pre-budget," said Westpac economist Bill Evans.Workers who believed they had the most to gain from Tuesday's budget, including those earning more than $80,000 a year, recorded the largest boost in confidence in April, while confidence fell for people earning between $20,000 and $80,000.
"In my view, the main explanation as to why consumption growth has slowed is the low growth in household income, and an increasing expectation that it is likely to remain low," he said at an American Chamber of Commerce lunch in Adelaide on Wednesday. Treasury official Angelia Grant told Senate estimates on Wednesday last week's budget forecasts "are consistent with the housing markets sagging or dragging on the economy" and that steep international downgrades to Australia's economic prospects were significant.. It sliced Australia's growth forecast to just 2.1 per cent this calendar year, short of what was predicted in the budget and well down on the 2.8 per cent the IMF forecast in October.
The comments open the door to sharper falls in Sydney compared to Melbourne, where the RBA believes lower vacancy rates could see it through higher levels of supply.
Consumers better be optimistic as the economy is fucked'😂
let the good times roll
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Property Property Latest News, Property Property Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
House prices predicted to fall another 10pc before 2020 reboundHouse prices in Sydney, Melbourne and Perth are set to continue their steep falls before a possible modest rebound in prices later this year or early next, Moody's Analytics predicts. Buyer profile has changed. People don't want to buy a 'House' anymore. They want a 'Home' decorated with beautiful original Oil On Canvas paintings. Being an Artist, working together with real estate stakeholders, my business is projecting exponential growth. . Seriously bad reporting again. Hey, I dunno Janda but maybe he is new to this... Moody's gave us GFC for starters... But you can't report hard news that they predict price rises in future without giving any coherrent argument why. This is just election propaganda. .
Source: abcnews - 🏆 5. / 83 Read more »
House prices set to fall even further this yearRatings agency Moody’s Analytics has dramatically revised down its predictions for the nation’s property market as low wages growth begins to bite. 9News
Source: 9NewsAUS - 🏆 10. / 72 Read more »
Coalition to blame for fall in house prices: Husic | Sky News AustraliaLabor frontbencher Ed Husic has told Sky News the Coalition is completely to blame for the housing market slump. \n\nUnder Labor, Mr Husic says Australians will see a resurgence in new home construction, more jobs, and less influence from investors who make it harder for first home buyers. \n\nThe Labor MP also shared his doubts over Adani, questioning the ‘arm-twisting exercise’ which has seen ministers threaten to quit and pressure other members publicly over the proposed coal mine. \n\n Yes they had a big Tax policy they dropped the libs and all that infighting really got little done at the expense of investors. Prices dropped on the Libs watch. Well they are the government What a ///////
Source: SkyNewsAust - 🏆 7. / 78 Read more »
Moody's dramatically downgrades its forecasts for house pricesFalls in house prices across the country are going to accelerate this year, rating's agency Moody's has forecast, with parts of Sydney and Melbourne likely to face drops of more than 15 per cent over the next 12 months | swrighteconomy swrighteconomy Nice swrighteconomy Good news for young folks! Good news for home owning boomer parents who want the kids to move out and on with their adult lives. swrighteconomy Moody's, the firm that had a 'A' Rating for Lehman Brothers until ONE DAY before it imploded. Yeah I'm going with their predictions.....
Source: smh - 🏆 6. / 80 Read more »
The surprising Aussie capital where house prices are boomingAcross the country, house prices are in free fall, with prices tumbling an average of 7.99 per cent across Sydney, Melbourne, Brisbane, Adelaide and Perth by the end of February 2019. What a great opportunity for people to buy their first home. Great news. Now more people can afford to have a roof over their heads. A step in the right direction. SPOILER: The (not so) surprising city is Hobart NoMoreClickbait
Source: newscomauHQ - 🏆 9. / 77 Read more »
House values to fall sharply in Sydney and MelbourneHouse prices are expected to fall sharply in Sydney and Melbourne over the course of the year, according to a new report. Building windmills nearby? Thanks crookedbill, not yet in the lodge and already scaring the shit out of those thinking ahead It is clear there is a long way down yet. Only agents try to talk up the market. Probability is 25% off 2017 prices before leveling out.
Source: newscomauHQ - 🏆 9. / 77 Read more »