Friday, December 24, 2010

Signs of Trouble Downunder

Mortgage applications down. Retail sales down.

High home ownership rates coupled with rising cost of ownership are taking a toll on the rest of the economy.

Retailers cry poor as sales drop sharply
Harvey Norman boss Gerry Harvey said there would be "blood on the streets" in the retail sector because business is so bad, the worst since the recession of the early 1990s.

"It's a crisis, the worst in 20 years," he said.

I'm still thinking that the real downleg of the housing crash will come after the government panics and drops rates.

Strange Summer Selling Season
According to the ABS data, in round numbers, there were only 48,000 loans approved in September 2010 compared to 65,000 for the same month in 2009.

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