What it means is that the trend for decelerating mortgage debt has temporarily reversed. .... .....mortgage debt accelerated over the most recent months, even though the rate of growth of mortgage debt continued to decline. .... Even though mortgage growth in CPI-deflated terms is at historic lows, it is growing more quickly now than it was at the end of 2012. .... Mortgage acceleration has thus risen, ..... This rising acceleration in turn has fed through to rising prices over the last few months... .... The uptick in the mortgage accelerator since the beginning of 2012.......
Here is all you need to know from the article you mangled...
"But to cause a sustained rise in house prices, Australians would need to not merely not delever, but to lever up from the current historically high debt levels—since it takes accelerating mortgage debt to cause house prices to rise."
So you cant boast all you want about a nominal increase of 0.5 for the quarter, but Keen can rest knowing his debt-deflation theories are playing out across the world, including Australia
Basically Keen was pointing out that we are not dropping the way the US did because we Ozzies are so brainwashed that leverage and property is a winning combination, that we deleveraging slower than other nations.
This just means when there is an awakening, our bust will be all the more rapid.
Keep taking quotes out of context and rallying up the few bulls still remaining in Oz. Your time is nearly over
Looking at Japan's slow burn, then accepting that Aust has a slow burn and trying to match the two seems to be a bit dim witted. Aussie housing prices will follow their own path as Aust is an individual in the world. There are few countries with a similar make up of industry and population. I can think of few countries as dissimilar than Japan and Australia on so many levels. Any comparisons are surely co incidence?
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
Furthermore, those ratios have been more or less static for a decade now.
And then Strinberg does backing bear vocals to support you on this contention by posting the bloomberg chart reflecting rpdata that shows house price to income ratios went up a further 1 times (from 3 to 4.1} in the last decade, countering your statement, and his own footer that "house prices have remained virtually unchanged since 2004"
I just love you bears.
WHAT WOULD EDDIE DO? MAAAATE! Share a cot with Milton?
I wouldn't say that bears have lost yet, but it hasn't been a great couple of days for them. However it's not houses to the moon either is it?
One could say it hasn't been the best 5 quarters for the bulls Peter.
Ok - positive results in dec 2010 and the recent report but what about the big picture and the downward trend in prices?
Anyone calling this a reversal this early on in time is acting very unwise.
Yes I more or less agree with that. I think that the question is whether this is a bottom or a false bottom, and seriously none of us will know until it has passed.
But you should concede that it could be a bottom.
Any expressed market opinion is my own and is not to be taken as financial advice
And then Strinberg does backing bear vocals to support you on this contention by posting the bloomberg chart reflecting rpdata that shows house price to income ratios went up a further 1 times (from 3 to 4.1} in the last decade, countering your statement, and his own footer that "house prices have remained virtually unchanged since 2004"
You are confusing price with affordability, or the price/income ratio.
House prices have obviously risen over the past decade, but so have incomes, at roughly the same rate.
So affordability, or housing costs as a proportion of income, has remained more or less unchanged over the past decade.
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