Posts Tagged ‘Glenn Stevens’

rsimeon

Will the RBA governor go out with a bang?

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That’s the big question that many are thinking with his current running commentaries on the Australian economy – but will he tee – off on exactly what are the major problems facing our economy? I hope he does with his ten-year term expiring on 17 September having taken over as the Head Teller back on September 18, 2006. Interesting to note that over that time he has left the cash rate alone on sixty-seven (67) occasions, cut the cash rate on twelve (12) occasions and increased the cash rate on six (6) occasions. Surprising how time flies when you’re having fun as the last cash rate increase was back on … more »

rsimeon

It’s all about the economy not the property buyers


I’m struggling to find a time when the bureaucrats and politicians struggled as much as they presently are when trying to define what exactly is happening to the Sydney property markets – please note that I have used plural as against the popular and misrepresented singular definition.

Australia’s head cashier Joe Hockey is having an absolute shocker given he hails from a family that has a rich real estate heritage. For example, last week he stated that more houses were needed to fix the home affordability issue. “I like many others, if you have a home, if you’re already there with a mortgage; you wonder how your children are going to … more »

rsimeon

Is 2015 the Year of the Great Aussie Property Critique?

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I made one glaring observation about the Australian property markets in 2014, namely how many commentators have absolutely no idea how the markets work, and persistently work and respond accordingly from incorrect data. In 2014 there was no bubble that burst, there was no property boom although Sydney in particular led the charge of the letterboxes given there is a misguided focus on median house prices. Of course it’s an absolute no – brainer when you constantly use the Sydney figure given the top three house price sales were three Eastern Suburbs homes for $39.000 million, $37.000 million and $32.000 million (approximately) which obviously skews the median prices to silly … more »

rsimeon

Real estate markets: plenty of dare and little truth

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There goes another financial year where for all intents and purposes profits should have been up and back to pre-Global Financial Crisis (GFC) levels. Some a step further by posting all time record profits given their respective graduation from the GFC together with the valuable lessons learned, which were then adopted then executed.

Having said that we should closely look at the Reserve Bank’s four prevailing views on the property market as each and every point raised is not just a concern but more of a forecast which in all probability will eventuate. The most important message from … more »

rsimeon

Nothing wrong with the occasional lesson in history

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As widely expected the Reserve Bank of Australia (RBA) decided again to leave the cash rate in a holding pattern for the seventh straight meeting although somewhat surprising the rhetoric was considerably different this time around. Sydney is the elephant in the room with house prices jumping 15.6 per cent in the last year according to RP Data although I would add that this is a lazy way of explaining and defining the property markets across Sydney given they are all performing differently – some are hot and some are not.

Back to the RBA where in an extraordinary week we heard both Glenn Stevens and treasury secretary Martin Parkinson publicly … more »

rsimeon

The Property Numbers That Really Count

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It was with great interest that I read the Minutes of the Reserve Bank of Australia’s (RBA) March meeting where the Head Teller Glenn Stevens noted somewhat nonchalantly that housing market conditions “do not pose a near – term risk” and that there is “no immediate cause for concern” with regard to debt levels. No mention of those ‘bubble and boom’ headlines that dictate newspapers although it should be noted that both Fairfax and News Ltd prosper very well financially by enticing vendors to get – on – the – market and spend, spend, spend in their respective newspaper real estate platforms.

There are no doubts that Australia’s real estate markets, … more »

rsimeon

The Great Chinese Property Burn

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As more property data is released we are fast seeing concerning scenarios that raise more questions than answers.

Although it was not well documented it is clear that the previous Labor government relaxed foreign ownership regulations to appease the state governments who were experiencing revenue drains, as these changes then topped up Stamp Duty revenues. The only problem is that the two standout property players are Chinese buyers and investors who are busily topping – up their Self-Managed Superannuation Funds (SMSF).

Given that the Abbott government decided that a Housing Minister was not warranted in their new government it appears that the weight of this portfolio now rests firmly on the shoulders … more »

rsimeon

Fire And Brimstone – Just Don’t Forget The Facts

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I can’t ever remember seeing as many conflicting reports on the state of the Australian economy as we are seeing at the moment. Maybe in 23 days time when the outcome of the federal election is known we may be in a better position to get a true reading on exactly what is happening or to that extent where our economy is headed. At this juncture in time it’s anyone’s guess depending on your political persuasion.

Just over a week ago the Reserve Bank of Australia (RBA) singlehandedly attempted to steady the economy when they dropped the cash rate to a record low of 2.5 per cent. Only history will be … more »

rsimeon

Scorecard: Businesses Doing Better – Governments Struggling

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As we predicted two Reserve Bank of Australia (RBA) meetings and the cash rate has not budged from 3.00 percent. One only has to read Statement by Glenn Stevens, Governor: Monetary Policy Decision to see – “In Australia, most indicators available for this meeting suggest that growth was close to trend over 2012, led by very large increases in capital spending in the resources sector, while some other sectors experienced weaker conditions. Looking ahead, the peak in resource investment is approaching. As it does, there will be more scope for other areas of demand to strengthen.)

I stated in previous editions … more »

rsimeon

Australia's CPI data is too late!

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In a recent edition of Virtual Realty News I referred to an article which appeared in Property Observer – Monthly inflation measure would have seen earlier rate cut: Paul Bloxham. The introduction of a monthly inflation measure “as used by almost all other OECD countries” would have seen a cautious Reserve Bank of Australia (RBA) cut this month (last meeting) says a former RBA economist and current HSBC chief economist for Australia, Paul Bloxham. Suffice to say nearly every OECD country works from monthly CPI data and Australia works from quarterly data where the March quarter CPI is determined at … more »

rsimeon

No Money – No honey. But no economical jack – knife

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I can offer the Reserve Bank of Australia (RBA) just three words – out of touch!

A classic case of economic tautology where on the one hand the RBA acknowledges that growth is “somewhat below trend” yet they remarkably decide to leave the cash rate on hold at 4.25 percent. Remarkably the RBA holds rate, but points to May cut so four months into 2012 we have not seen the cash rate adjusted since December 2011?

So why a cash rate cut in May and not April – we will have to wait another 26 days to find out. Not many … more »

rsimeon

Which Bank In 2012? None Of The ‘Big Four’!

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With unprecedented times in our “Big Four” banking fraternity, it was puzzling when the Reserve Bank of Australia (RBA) declared that big banks not too profitable. What did make sense was Australia’s ‘head teller’, Glenn Stevens, telling the House of Representatives Standing Committee on Economics, that “you only have to look at the dimension of the banking problems in Europe to see that we don’t want banks that can’t earn a good return.”

Whilst the “Big Four” have come under huge scrutiny regarding variable mortgage rates, it really is no big deal, when consumers can and should shop around. This is evidenced by … more »