The media are always on the lookout for something out of the ordinary, go back one year when the rates were high,there was a different set of numbers for sales volumes,fast track to this time next year ,if the rates go the way i think ,then the numbers will be different,I like a quote by Sir Richard Branson,"why pay a premium for advertising space half way through the news paper,when you can be on the front page for free,willair..Article in the Age will be of interest :
Any thoughts anyone?
Businessspectator said:Triguboff now says: “If the Reserve Bank insists on raising interest rates in the hope of suppressing prices, then they must understand that they will in turn suppress construction.
“Banks are still very cautious and will insist on decent margins of profit, otherwise they will not advance loans to developers. I know that the Reserve Bank does not want to do it, but they have to make up their minds. Interest rates should not rise until building activity increases significantly. That is the true reasons for raising interest rates – stop oversupply. But all the evidence and rents and prices point to undersupply for the foreseeable future.”
What Triguboff is highlighting is that the dramatic rises in Australia's population complicate the interest rate argument. The Reserve Bank will not halt interest rate rises because of the Triguboff warning, but they need to understand that their current decision making process may create the opposite of what they expect in long-term dwelling prices.
It proves only one thing.
The rich get richer and the poor get poorer.
And with just eight selling weekends remaining before Christmas, all the signs are pointing towards an edge of panic having entered the market.
Those people should buy before
a) prices move
b) interest rates increase.