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The Credit Crunch Is Coming!

Latest data from the RBA showed a surprising fall in new credit for housing. So we look at the numbers and consider the likelihood of a credit squeeze ahead.

https://www.abs.gov.au/statistics/economy/finance/lending-indicators/apr-2022

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Written by Walk The World

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  1. Hmm.. you have my attention. Nothing particularly surprising here. Games about guessing the peak of these rate increases are meaningless without an accompanying explanation a little bit more convincing that a declaration of job title and glib sentence or two. Vested interests invest in promoting their interests as the general interest. Keep your eye on that rate of change in credit Mr. North, inventories and time it takes for property to actually sell.

  2. The construct both extremes of our Westminster clownshow assume has failed.

    Tightening and loosening are both artificial manipulation used to hide lack of real productivity.

    When they tighten it's a failure, when they loosen it's a failure. (Artificial manipulation)

    The Westminster circus & marching band has no mechanism for another path because donors frame the choices available and both extremes are tired, flawed and useless.

    This donor lead strategy caused the convicts to arrive here upon industrialist economic presumptions.

    We decades deep into repeating Hitler's quantitative population growth fail? Why is that so.

    Corporate political fascism is exactly the same fascism just with a corporate justification.

    Most Australians couldn't find a quarter teaspoon of brains between them even if they crowdsourced it.

  3. Rate payment increases don't start til June. Hanging back to watch the proverbial hit the fan by September.
    No sympathy when there are 350k empty foreign owned houses in NSW alone. Everyone's doing the smash and grab.

  4. Macquarie bank have 12 month term deposits at 2.75% and that is before the RBA decision next week. I really would not like to be struggling with a mortgage now, mortgage rates are going to zoom up.

  5. we have a bumbling knee jerk government that with certainty will stuff it up at our expense but we are probably still one of the most desirable places to live right now (i could be bias)… if things unfold in a particular way, will people start looking to Australia/New Zealand on mass? not the hand out crowd .. im talking about the families with proper wealth as they could drive the sector with their money fluffing up on arrival.

  6. Houses are still being sold as soon as they are hitting the market, either these buyers are all cashed up or just have no idea of what's coming. My First mortgage got as high as 15% and nearly broke me.
    We now are going to have the perfect storm with Inflation and High Interest rates again but this one is going to be Worldwide.
    Today i spoke to a Real Estate Agent who tried to tell me housing interest rates will top out at 6.0%, i dont know what planet he is from but he is very well miss informed and lives under a rock.

  7. Government convinces young first home buyers to buy a property then does a rugpull ruining them. Government should just leave markets alone.

  8. Watching all this happen in real time it really makes me wonder – were this many people really dumb enough to believe that credit would be so cheaply available forever? That house prices would keep up going up forever despite no corresponding wages growth whatsoever?

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