In this video, I talk with author and economic analyst John Sneisen about the housing bubble situation in many cities across Australia, mainly Sydney as well as the overall issues with the economy.
The annual home value growth in March of 2017 in Sydney was 19%. It has now decreased by 1% which shows somewhat of a turn around.
Interestingly, Sydney makes up for nearly half of Australia's economy!
HSBC's chief economist for Australia, Paul Bloxham recently warned that the housing rally is almost over, but he claimed that it will be a soft landing. Well we've heard that before.
While Australia's localized housing markets aren't as bad as places like Norway or Vancouver and Toronto for example in Canada, it's bad and will continue to get worse. It's that trick illusion of growth in value when risk rises astronomically, dooming the uninformed involved.
John breaks down the problems with Australia's GDP when comparing construction GDP to agriculture GDP. Due to the fact that we have so many Australian viewers, we find it important to continue to spread the message of individual liberty, self sustainability and financial responsibility to those living "down under."
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I think Australia will probably let more people in to keep the ball rolling.
"Soft landing?" LOL This is like Ben Bernanke telling everyone in 2007 that there is no housing bubble. The arrogance of these so-called economists and politicians is breathtaking.
Well said..
Nice information. Thanks for sharing
The implosion is coming from central bank hubris: China, Euro, Japan, Gringo... all around
100% Upvote and Resteem for this one! As soon as I saw this post I couldn't wait to check it out. Thank you for keeping the finger on this issue @joshsigurdson. I and many people I know here are watching this intensely.
Housing is a religion here. Speaking out about the ingrained concept of "housing always goes up" leaves you on the outer. 41.2% of economic grown being centralized around Sydney, as you mention, is something that should indicate to anyone dispassionately that things are unbalanced.
I previously lived and worked in Perth, the former mining boom state. I still know people there and get on the ground feedback of the decline of that state. Still, I feel somewhat alone in that view so these videos are really important.
The baby boomer demographic wave is a massively influential wave that many don't grasp the scale of. I suspect that many will be caught out. I see around me here people mortgaged to the eyebrows and I cringe at the risk that the average family here is exposed to.
You hit the nail on the head with our reliance on China too. Couple that with our unveiled US alliance, it seems schizophrenic.
Would love to see more content like this. You guys do a great job. Thank you for pushing this material!
Yeah, it's straight U.S. market 2008 over there. Gonna get interesting!