Australia's largest stock trading and investment forum Australia's #1 stock forum

Can we just simply build more houses / units to slow down the house price madness !!!, page-111

First 111 Last

Share
Profile

Follow
kingpins

25,527 Posts.

32

30/05/24

14:45

Post #: 74085291
Share

Originally posted by Menta ↑

When property changed from being simply a place to call home to being an investment asset the game completely changed. It was then no longer about supply & demand, which determines the price of goods & services, it became all about the supply & demand for credit.

Australia's housing bubble, like all assets bubbles, was fuelled by credit growth and the current historic level of household debt, now some $3 trillion, is already unsustainable even with record low interest rates. As interest rates rise, bond yields have been rising globally for many months which is already placing upward pressure on the cost of international bank funding, unfortunately the debt burden with become just too much for too many Australian families to maintain. The resultant forced sales will quickly turn into a flood and lead to a house price crash. In such a rare deflationary spiral we can quickly transition from perceived under supply to actual over supply of housing, especially as people become less and less willing or able to borrow and banks become more and more reluctant to lend. We are about to enter tragic yet inevitably unprecedented times.

Expand
Upvote

Reply

Top Stories

SS1

Sun Silver to kick off drilling next week at 292Moz Maverick Springs silver-gold project

AHK

Ark Mines inks 1.5Bt Exploration Target for Sandy Mitchell REE play including NdPr; PFS due in Q4

Has uranium run out of steam? An update on nuclear markets & developments ahead in FY25

World Gold Council says market in want of catalyst; flags Asia sell-off risks. Then there's Trump

SS1

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

There are more pages in this discussion • 12 more messages in this thread...

First 111 Last

SPONSORED BY