Monthly Archives: June 2017

Auction Clearance Rates

It was a fine and sunny day for Auctions, a great time of the year.

The “On The Day” clearance rates for all Queensland Auctions, of which there were nearly 300, was an astounding 29 percent.

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I know it has been a long time coming, but…

The Sydney Morning Herald today.  Credit rating agency Moody’s has downgraded a dozen Australian banks, including the big four, citing increased risks in the nation’s increasingly indebted households.

Moody’s stripped the big four banks – the Australia and New Zealand Banking Group (ANZ), Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), and Westpac Banking Corporation (Westpac) – of their Aa3 long-term rating and placed them on the next level down at Aa2, although it did not alter their short term ratings.

“In Moody’s view, elevated risks within the household sector heighten the sensitivity of Australian banks’ credit profiles to an adverse shock, notwithstanding improvements in their capital and liquidity in recent years,” the statement said.

Moody’s did not think a “sharp housing downturn” was a “core scenario” the risk posed by increasing household debt had to be considered when weighing the ratings of Australian banks.

“In Moody’s assessment, risks associated with the housing market have risen sharply in recent years. Latent risks in the housing market have been rising in recent years, because significant house price appreciation in the core housing markets of Sydney and Melbourne has led to very high and rising household indebtedness,” the statement said.

I’ve been getting real time, real life feedback from operators in the business.  The rot is setting in amongst the Nappy Land young couple buyers.  Their properties are being revalued DOWN.  it will be blood in the streets when this whole pack of cards collapses.

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