Those following my channel will know of the modelling which shows the strong link between credit availability and home prices. We know that when credit is tight, and the rate of change in credit is negative, home prices fall. And we are seeing this in spades now in New Zealand.
So today I want to explore some markers in New Zealand, and why property will fall further and faster.
Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
New Zealand Credit Falls Off A Cliff – Home Prices Will Follow! [Podcast]
Today I want to look at a range of recent data to highlight just how broken our housing market is. I regularly talk about how high prices are relative to income and how households are under financial pressure, but there are other forces to consider too.
For example, we got updated data from the RBA yesterday on indicative mortgage lending rates, and despite the ongoing debate about if and when the RBA may lift the cash rates, the market is already reacting with higher mortgage rates. Note these are indicative rates, but the trend is clear.
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
The latest edition of our finance and property news digest with a distinctively Australian flavour.
In today’s show we unpick the latest US CPI numbers, check in on New Zealand Home prices in June, and also ask whether we are in a tech bubble 2.0 and whether NAB will acquire Citi’s Australian Banking Business.
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
The Uncertainty Principle: The DFA Daily 14th July 2021 [Podcast]
My latest discussion with Steve Mickenbecker from Canstar.
Steve Mickenbecker is in Canstar’s Group Executive Team, bringing more than 30 years of experience in the Australian financial services industry. As a financial commentator for Canstar, Steve enjoys sharing his expertise across topics such as home loans, superannuation, insurance, mortgages, banking, credit cards, investment, budgeting, money management and more.
There were three FOI’s released by the RBA late last Friday – we look them over to get a read on their approach to home prices. Truth is, they want them higher, despite the inequality and risks resulting.
CONTENT
0:00 Start 0:30 Introduction 1:36 Impact Of Policy On Savers 10:45 Reporting 13:20 Inequality 21:36 Conclusions And Wrap-Up 24:22 Outro
Journalist Tarric Brooker and I have our Friday afternoon chat.
Contents 0:00 Start 0:32 Introduction 1:10 The China Factor 7:00 Iron Ore 10:00 Border Opening 12:35 Stimulus 15:30 Labor Positioning
22:30 Home Prices and the Election and K 29:14 Demand Drivers 32:10 First Time Buyers 35:00 Retiring With A Mortgage 39:30 Just Keep Paying The Mortgage 42:00 Economic Realities And Responsible Lending 42:45 Value Narrowed To Financial 46:00 Fear Factor 49:36 The Old New Normal 53:30 Ending
Go to the Walk The World Universe at https://walktheworld.com.au/
The latest Friday afternoon chat with Journalist Tarric Brooker. Tarric is @AvidCommentator on Twitter.
0:00 Start 0:50 Extend and Pretend 10:00 Economic and Social Costs 14:55 First Time Buyers 20:41 Impact of Rate Cuts 32:43 Financial Markets Booming 42:05 Not Much Achieved 44:29 JobKeeper Missing Data 49:00 Strategy – what Strategy? 55:00 Ending
Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
1.8 Trillion Reasons Why Home Prices Have Not Fallen - Yet! [Podcast]
This week I recorded an interview with The Elephant In The Room’s Veronica Morgan for Real Estate Talk, slated as “your trusted voice in property investment. Australia’s most respected real estate investing experts give tips on wealth creation”.
Importantly, we got to the heart of the property issue, and found much common ground. I may have diluted the perception of being an outright property “bear” but perhaps we underscored the realities in the markets at the movement. And yes, property is still overvalued against long term fundamentals by ~40%.
This week Veronica Morgan catches up with a self-confessed property bear whose message has been largely misunderstood. Martin North explains his thoughts about property investing in a fascinating 2 part interview. Simon Pressley and Cate Bakos talk about why many regional locations are exhibiting firm demand and as a follow on to that story, Kevin Turner asks Miriam Sandkuhler why buying in regional areas. But first Veronica is hot on the trail of a story of particular interest to people with pets in strata with strata layer Amanda Farmer.
Journalist Tarric Brooker and I discuss the vexed question of home prices in the context of the current political and economic backcloth to the lock down. Tarric uses the handle @AvidCommentator on Twitter.
Digital Finance Analytics (DFA) Blog
Some Thoughts About House Prices: With Tarric Brooker [Podcast]
