Have a look below at how desperate things are getting at our Financial institutions.
Item #1
Housing Loan approvals up? True statement perhaps but let’s say home loans are down 50% from peaks & then they rise 1% per month for 5 months the statement is technically correct? But is confidence really back if home loans are down 30% -40% from long term historical averages?
Item #2
Australians intending to buy a investment property has risen to 9%??
Well investors traditionally make up 20% -25% of all buyers.
Talk about putting a spin on bad news.
In reality they are confirming Investor activity is down 50% if only 9% of Aussies are considering investing in property.
Just imagine all these apartments coming on the market targeting investors & this bank is confirming demand is down by 50%?
Well investors traditionally make up 20% -25% of all buyers.
Talk about putting a spin on bad news.
In reality they are confirming Investor activity is down 50% if only 9% of Aussies are considering investing in property.
Just imagine all these apartments coming on the market targeting investors & this bank is confirming demand is down by 50%?
Item #3
Says 750,000 more people joined the workforce??
They fail to mention that the unemployment rate is still higher than before the GFC & hours worked & overtime is down. Most of these jobs are casual or part time employment. Effectively peoples incomes are down 7% -10% on pre GFC levels. Then there is the little fact that rising Power / Food / Health costs have eroded peoples spending power.
They fail to mention that the unemployment rate is still higher than before the GFC & hours worked & overtime is down. Most of these jobs are casual or part time employment. Effectively peoples incomes are down 7% -10% on pre GFC levels. Then there is the little fact that rising Power / Food / Health costs have eroded peoples spending power.
This article completely ignores the fact that Retail Spending is down, Land Sales are at Record lows, New Housing Starts are at record lows,.
Just how bad are our markets when financial institutions are resorting to distorting the truth to try & build up confidence in the average consumer so that they go out & borrow money?
Reminds me of the desperate tactics undertaken by the NAR (US equivalent of our Real Estate Institutes) See the attached adverts they put out in 2006 trying to get US consumers to buy houses with their “Positive Spin” Unfortunately anybody sucked in by this spin saw the value of their homes drop 30% to 40%.
These folks might as well get a box of these & give that a try?
I just wanted to say that you are doing a great job. Your insights are much needed, hopefully your work will get to open the eyes of a generation that lived the lie that capital gains are forever, "property prices always go up", etc.
ReplyDelete