Residex's John Edwards is saying this regarding interest rates (email dated 20/5/10). Make of it what you will.
"Rates to go down!
Market wrap with John Edwards, CEO of Residex and FindMeaHome.com.au
What I am thinking?
The next move in interest rates is more likely down than up. I note five things in this respect:
Housing finance numbers indicate a slowdown;
Housing growth in all cities other than Melbourne is starting to show "cracks" at the margins with lower cost suburbs presenting falls in values;
Retail sales look to be sluggish at best and more likely slowing;
The problems in Europe are flowing over into stock markets and wiping billions off the value of portfolios and hence zapping confidence; and
The Government's "great big new tax" on the resource sector is going to unsettle people and runs the risk of diminishing employment opportunities as the resource sector holds back on new projects until there is clarity."