Don’t you just get sick and tired of all the bloody spin and rubbish coming out of the Banks, smart-arse know-it-all economists, second tier lenders, brokers and self serving major real estate companies?
Building starts are DOWN, big time, AGAIN. “Analysts” were expecting a result to be “flat” but they are between 10 and 15% LOWER than the same time last year and 2012 was a bloodbath for builders and subcontractors.
The big difference is that I TALK to Builders and subbies, the guys and girls in the hardware stores, book-keepers and accountants who look after the books and tax returns of builders and tradespeople. They KNOW, in real time, that the whole sector is in the shit.
I mean, just look the disaster that is “MASTERS”, Woolworths attempt to take market share from Bunnings. Again I’ve been into a few Masters’ Stores and chatted candidly with front-line staff and Supervisors who are not afraid to tell all as they think they’re gonna lose their jobs anyway.
As to existing property sales, in a local suburb near me the lowest volume of sales since 2001 was in 2011, a very sad year indeed. 2012 saw sales rise 50% but that was explained by the Receivers moving in and fire sale-ing a bunch of apartments. Take those sales out and it was a disaster. 2013 is looking, even with fire sales still taking place, to be more than 20% lower than 2011.