Are higher interest rates ‘smashing the economy’? | Property Insiders
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- เผยแพร่เมื่อ 19 ก.ย. 2024
- At a charity lunch last week, Reserve Bank Governor Michelle Bullock was asked several times whether the RBA’s 13 interest rate rises were smashing the economy as Treasurer Jim Charmers suggested leading up to last week’s release of the GDP numbers.
So how bad is the economy, and will we have a lot of force sales? That’s what I ask Dr Andrew Wilson, chief economist of My Housing Market in today’s Property Insiders chat
00:44 Bullock's controversial comments
02:39 Inflation and interest rate debate
04:36 Economic shifts and low arrears
07:00 Growth in home lending
10:13 Investor interest spikes
12:50 Current state of property markets
15:36 Regional housing demand variations
18:04 Balancing approvals and demand
23:04 Seasonal property price trends
27:08 Latest auction markets insights
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Watch this week's show as we discuss how Michelle Bullock dodged answering the question of whether the RBA's 13 interest rate rises were smashing the economy, but said that around 5% of owner-occupiers on variable-rate loans would be in relative strife financially.
The RBA is putting "economic dogma over rational economic decision-making", according to former treasurer Wayne Swan, and higher interest rates are "smashing the economy". The latest GDP data shows that the economy grew at its slowest pace since the early 1990s.
Population growth and public spending are driving inflation, with the Reserve Bank on high alert due to rising inflation concerns. While Treasurer Jim Chalmers criticised the Reserve Bank's restrictive monetary policy, it's the record growth in population and public spending that are driving the economy forward.
Dr Wilson explains that new home lending rose 3.9% in July to $30.6 billion, with investor loans rising 5.4 per cent to $11.7 billion and owner-occupier loans rising 2.9 per cent to $18.9 billion.
Home building approvals rose by 10.7% over July, following a 7.2% June fall, but the volatile unit approvals skew the numbers significantly. Not all developments that are approved get built, and we are just not building enough dwellings to meet demand.
The spring weekend auction market officially began with mixed results, with Sydney and Melbourne remaining steady despite lower listings, but the smaller markets reporting sharp declines in clearance rates. The national weekend auction market reported a clearance rate of 58.8%.
I think interest rates were around 17% under PM Keating?
we have got to do something to stop property prices rising...
It's called a crash.
@@zenmachine50 It’s very easy, just stop listening to Michael and Andrew and you will realise that property prices have been falling for over two years
yeah, maybe where you live bahahaha@MR-hu1bx
look at these sooky boys 😂😂😂 try harder!
@MR-hu1bx you're right, don't listen to Andrew and Michael. Listen to Australian bureau of statistics, Corelogic, Proptrack and SQM research, and they will all tell you the same
I think the Reserve Bank Governor forgot to put a 0 in front of the 5 ( to make it 50%) that are in financial strife..
Yes..that's correct
@contsiolis1998 it's a very mixed picture. Some people are really hurting, while others clearly are able to keep spending.
Michael, are you worried that your prediction of Melbourne price being $3.2M by 2032 is not going to be?
@@shivaraj6 Bahahaha yes, he’s extremely worried.
@shivaraj6 I really doubt whether that's going to happen
Bahahaha just listen to Andrew try and Wessel his way out of this! TOO TOOOOO FUNNY.
The more the economy goes down the drain means you will see how even more desperate these two will be come 😂
They were wrong all along
Instead of accepting they were wrong ,will now try to "weazle " their way out of it as always..
Hey Michael..True hey?weasling
Caravan sales are up as predicted
@emp731 so you're now making money since you live in a caravan the back of your parents home - have they kick you out of the bedroom
@MichaelYardney are you for real Michael? Seriously..people are living in caravans in Australia like never before..And somehow you try to make it about me..
@@emp731 as a bricklayer, I'm surprised you're not at work, but you've got time to watch our videos. I really appreciate you taking the trouble to do this during the day.
@MichaelYardney my personal circumstances is none of your business, once again you try to make about me and this tells me you are desperate to put one over a person..Which is sad
@@emp731 the problem is, you always play the man not the ball! Rather than talking about the property market you always make comments about my situation, my thoughts, my commentary yet you back off as soon as somebody talks about you
Bahahaha this will be a classic episode everyone, watch how Michael and Andrew spin the bearish news into an optimistic outlook so that you keep buying property.
Hahaha my GOD anyone that listens to these two lunatics will most certainly lose all their money!
You got no money to loose 😂 bahahaha
Really these guys are just a reflection of a larger problem in Australia
Decide for yourself : th-cam.com/video/srp-qpEwhxQ/w-d-xo.html
A billion $$$$$$ of property a day is just a throwaway, bearish line used to impress potential 'BANKSLAVES.
Warren Buffet in a room filled with 500 people ........on average everybody is a BILLIONAIRE...happy days for Warren no joy for the other 99%. Be very careful believing selective 'average data' or nominal figures used to validate SPIN!!!!!!
@MR-hu1bx thanks for once again watching our show and giving such insightful comments. I'm really pleased you're one of our biggest fans.
First 🍪
@CookieMonster-wy4qb thanks for watching
Who cares Kookey loser
Yet no rewards
@@emp731 😂 too good, no reward for cookie other than he’s massive amount of debt from listening to Michael and all the negative equity in his home
@MR-hu1bx yet he banging on the same drum everyday..I remember the days when cookie was on the other side of the fence