http://finance.news.com.au/story/0,10166,12490057-31037,00.html
The index measuring whether now was a good time to buy a major household item fell by 18.2 per cent, Mr Evans said.
Australian consumers were also much less confidence about housing, with the index measuring whether now was a good time to buy a dwelling falling by 13.3 per cent.
While not as extreme as the 23.4 per cent drop in sentiment following 2003’s rate hikes, Mr Evans said a second rate rise this year would see housing confidence fall even further.
Mr Evans said the Reserve Bank was likely to conclude that further rates hikes this year were not necessary.
“We expect the Reserve Bank board will decide to keep rates on hold when it next meets on April 6,” he sa
Originally posted by kaloni:The index measuring whether now was a good time to buy a major household item fell by 18.2 per cent, Mr Evans said.
Australian consumers were also much less confidence about housing, with the index measuring whether now was a good time to buy a dwelling falling by 13.3 per cent.
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It might not just be the effect of the expected 1/4% rise, this time, but also the reality that this boom was like all others and has come to the end.
People are now seeing their equity shrink for the first time since 1991, and for many they have never experienced this before, they may now need to readdress their plans for retirement, new cars, kids private schools etc. Part of that planning may invoved marginally cutting spending.
I could go into the next steps but we have done it all before.
I think it is significant that sentiment has fallen faster than during the stock market crash of ’87 or the recession we had to have![ohno]
Part of that planning may involve marginally cutting spending.or even the entirely ‘new’ concept of repaying debt as opposed to simply waiting for capital appreciation of assets![blink]
Interesting times ahead.
Cheers, F.[cowboy2]
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