"House prices nationally could fall as much as 10 per cent in the largest correction in the past 40 years as the market absorbs Labor’s tax changes, according to Morgan Stanley analysts."
How big do you think the falls will be this year? Or will house prices keep going up?
"Top property leaders say Sydney’s housing market has become the first casualty of Labor’s tax changes as investors and even first home buyers step away from an accelerating downturn."
The Sydney and Melbourne property markets have been falling for some time, driven by higher and higher interest rates following domestic fiscal spending issues and, later, the Iran War.
Do you think "property experts" will now try to blame the budget for what is essentially a tapped out market/asset bubble.
I've heard a few people make observations that inventory in some of our big box stores is low i.e. the shelves in Bunnings, Officeworks is becoming lighter with less stock of line items etc.
Is this observation correct and broad based or just isolated?
If it is, what is the driver for this? The war is primarily a fossil fuel crisis with a shortage on oil. It is not like Covid where industry shut down across the board.
There are naturally shortages on petroleum based products - PVC pipe, plastics. I wouldn’t have thought plastics would be a large problem yet? Is it a freight issue?
Or is it a balance sheet issue, companies are driving down inventory in a period of uncertainly and potential demand destruction. I remember a few companies during Covid got caught out with too much inventory.
Is there any purchasing managers here that can shed some light?
Chris Joyce says Australians should absolutely be preparing for recession as may households hit limits to what they can afford.
How are you preparing?