June 01, 2009

Am I The Only One Who Sees What's Happening Here?

My mum just bought a new home, a 2 br villa for $340K. She was competing in a very volatile market, because all these first home buyers thought they had only weeks to buy a house before the first home buyers grant disappeared. So of course, Australian housing figures for the last quarter look good (and lazy journos can't be bothered breaking it down to see what's happening at the high end of the market). Even the new home builders have been rushing to get a piece of that sweeeeeet $21K freebie.

Similarly, the government gave away millions of dollars in "stimulus" and retails sales are also looking good. Who could have guessed, eh!!!

So on the surface, everything is fine, right? The band is still playing, and the ship has barely begun lilting to starboard. We'll all just keep pretending we didn't hear that mighty SMACK! when we hit the iceberg...

New home sales show signs of life - ABC News (Australian Broadcasting Corporation)

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