OPINION: 'It is fair to ask what will happen in 2020.'
. The housing market started the year amid unusual gloom, then did a big U-turn. It ended up in a much more familiar place for Australians – a frenzy of bidding driving house prices up at a record rate.We all learned something in 2019 – some Aussies were shocked to discover house prices can actually fall. We also learned house prices will bounce back if the RBA cuts interest rates.
But in the longer run the link from housing prices to interest rates raises big questions. With interest rates at record lows, surely they must eventually rise again. After all, the last two decades of rising house prices happened as rates fell from 5 per cent in 2000 to 4 per cent in 2010, then to 0.75 per cent in 2020.
Interest rates are already at record lows and seemingly having little effect. If a recession does come in 2020, it’s frightening to contemplate how little the RBA might be able to do to reverse it.2019 was not a terrible year for jobs, but as the next graph shows, it was not impressive. Underemployment and unemployment both rose, taking us nearly back to where we were at the start of 2018.Rising underemployment is usually a bad sign for wages. The backbone of the economy is our paycheques.
2019 was the year of the WeWork saga. A hot American real estate start-up funded with way too much venture capital money, it was going to float on the stock market for billions of dollars. Instead it suddenly stumbled and fell. The float was cancelled. The CEO was sacked. A whole lot of dodgy dealing was exposed. The company is now slashing staff and trying to avoid bankruptcy..
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Could Darwin fishos lose one of their best local fishing spots in a land sale?A fight brews over prime Top End waterfront access as land sale looms at Little Mindil.
Read more »
'Black gold' rush: Investors line up for petrol stations despite fuel's uncertain futureHigh-octane real estate deals are fuelling investment in petrol stations but what about the looming threat from ride-sharing, electric vehicles, and tighter emissions standards?
Read more »
Thousands seek shelter from bushfiresThousands of people have taken shelter at the foreshore of Mallacoota, a small town in the East Gippsland region of Victoria, facing attack from bushfire embers and describing complete darkness across the sky at 9am
Read more »
Victoria Bushfires LIVE: Gippsland remains on high alert as lightning starts new firesBushfires in East Gippsland are now about 550,000 hectares and some fires have joined together. Seven emergency fire warnings remain in place. Follow our coverage live.
Read more »
Thousands seek shelter from bushfires'Erratic' bushfires continue to rage across Victoria, with eight emergency warnings in place for East Gippsland.
Read more »
Trade deal between US and China could be signed next weekA White House trade adviser says the 86-page agreement is being translated and double checked.
Read more »