Cars vs. homes
Micheal Pascoe wrote a great article yesterday entitled; Throwing money at housing is no cure for fear. He did a poetic job of contrasting recent record car sales to the continuing stagnation of the housing market. Michael referenced ‘the warning issued by the Reserve Bank two years ago about relying on residential real estate forever rising.’ To recap, Glenn Steven’s official statement was:
Unfortunately the footage is still not available through the Yahoo 7 website. Having watched the interview shortly before joining Steve on his Keenwalk, I anxious to watch it again two years after the fact, when the Housing market has officially slipped off its stilts. This interview will undoubtedly go down in history as one of the most indicative RBA broadcasts ever!
David Lawson
Media commentators would have zero to talk about if they actually studied the facts.
1) Top selling car for the last 2 month is a HiLux.. the standard issue vehicle in the mining industry.
2) The most recent bump in consumer spending (that even the PM crowed about like in meant something) was driven by, wait for it… an increase in transport expenditure and the biggest increase was in WA…
There is zip going on anywhere bar the massive expansions at mines.