By Kris Sayce – Port Phillip Insider (Australia) –
This’ll make you laugh. From the Sydney Morning Herald:
‘Confidence in the housing market has collapsed, with the number of Australians describing property as the wisest place to put their savings falling to its lowest level in more than 40 years.
‘The Melbourne Institute of Applied Economic and Social Research has been asking about the wisest place to store savings since it began its consumer confidence survey in 1974.’
Oh, OK, well not that bit, this bit:
‘Westpac chief economist Bill Evans said the result showed “a clear increase in risk aversion”.
‘“Consumers are saying: yes we expect [real estate] prices to rise, but we are a little cautious.”’
Where does it say that consumers expect house prices to rise, but that they are cautious?
We thought it said that only 11.6% of consumers thought property was a safe place for savings. That, by the way, is down from 28% in September 2015.
In other words, as recently as just over two years ago, nearly one-third of consumers thought housing was a safe bet. Today, barely one-in-nine have the same view.
We should think that Mr Evans and Westpac may want to take these development a little more seriously. The Aussie house price crash is coming…and soon!