{"id":39747,"date":"2018-10-27T06:43:05","date_gmt":"2018-10-27T11:43:05","guid":{"rendered":"http:\/\/olduvai.ca\/?p=39747"},"modified":"2018-10-27T06:43:05","modified_gmt":"2018-10-27T11:43:05","slug":"here-comes-the-housing-bust-reverse-wealth-effect-australia-edition","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=39747","title":{"rendered":"Here Comes The Housing Bust \u201cReverse Wealth Effect,\u201d Australia Edition"},"content":{"rendered":"<header class=\"entry-header\">\n<h3 class=\"entry-title\"><a href=\"https:\/\/www.dollarcollapse.com\/housing-bust-reverse-wealth-effect-australia\/\">Here Comes The Housing Bust \u201cReverse Wealth Effect,\u201d Australia Edition<\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<p>For the past few years, homeowners just about everywhere have been able to finesse life\u2019s problems by thinking \u201cat least my house is going up.\u201d This home equity accretion allowed them to buy stuff on credit, safe in the knowledge that even as they maxed out yet another credit card their net worth continued to rise. They felt smart and confident, in other words, and so continued to behave in ways that the modern world defines as normal and natural.<\/p>\n<p>But now that\u2019s ending. Home prices have stopped rising in many places and in a few canaries in the financial coal mine have begun to plunge. Here\u2019s what \u201cplunge\u201d means for Australians:<\/p>\n<blockquote><p><strong><a href=\"https:\/\/www.abc.net.au\/news\/2018-10-23\/house-prices-falling-as-interest-rates-wage-growth-move\/10418278\" target=\"_blank\" rel=\"noopener\">House prices \u2018falling by over $1,000 a week\u2019 in Sydney and Melbourne, Deloitte says<\/a><\/strong><\/p>\n<p>The boom time is over and we\u2019re now officially experiencing the \u201chouse price fall we had to have\u201d, according to Deloitte Access Economics\u2019s latest business outlook.<\/p>\n<p>It has found what many had been predicting: prices are dipping as interest rates are rising, with our biggest cities feeling the winds of change most keenly.<\/p>\n<p>\u201cOur house prices here in Australia had streaked past anything sensible by way of valuation,\u201d said Deloitte partner Chris Richardson.<br \/>\n\u201cNow, finally gravity has caught up with that stupidity and prices are falling.<\/p>\n<p>\u201cIn Sydney and Melbourne, housing prices are falling by over $1,000 a week.\u201d<\/p>\n<p>Prices had surged across the country over the past five years as historically low interest rates have driven Australians to load up on debt, while investors had also cashed in.<\/p>\n<p><strong>Not if, but by how much<\/strong><br \/>\nHousing forecasts have gone from disagreement over whether home prices will fall to debates about how much they\u2019ll decline.<\/p><\/blockquote>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Here Comes The Housing Bust \u201cReverse Wealth Effect,\u201d Australia Edition For the past few years, homeowners just about everywhere have been able to finesse life\u2019s problems by thinking \u201cat least my house is going up.\u201d This home equity accretion allowed them to buy stuff on credit, safe in the knowledge that even as they maxed [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[41,12428,9021,22618,406,22617,2340,7544,9653,1592],"class_list":["post-39747","post","type-post","status-publish","format-standard","hentry","category-economics","tag-australia","tag-deloitte","tag-dollarcollapse-com","tag-house-price","tag-housing-bubble","tag-housing-bust","tag-housing-market","tag-john-rubino","tag-melbourne","tag-sydney"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=39747"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39747\/revisions"}],"predecessor-version":[{"id":39748,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39747\/revisions\/39748"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}