The chart is running the same way as Coles prices...
I can almost see history written now, come August, the July crash in new dwelling starts with the end of the grant will not be televised. The HIA will then start spruiking a couple of months after about the cronic shortage which is arising due to low housing starts and the pressure its putting on 'skyrocketing' rents; these are pretty much the last two spruik lines this industry has to try and spark a bull run, out of fear, not fundamentals.
It's funny also how they and every other real estate interest calls on the RBA to slash rates further. Banks are in a corner, overseas funding markets smell a bubble here and will only lend at at higher premiums which is squeezing the margins on the mortgages they can write. They are also keeping deposit rates at a higher premium than they normally would to prop up their balance sheets with locally sourced funds to try and make them look more diversified (attractive) and less dependent on overseas debt.
Fast tracking Australia towards ZIRP is not in her best interest, especially when the disconnect between the cash rate and the benefit it will have on the economy are at such a disconnect, look at what ZIRP did to Japan (economic cardiac arrest) and now to the rest of the Western world.
