2013 August Australian Economy and Interest Rate

Well, it looks like the Global Financial Crisis is finally over.

Whilst some economies are still suffering some pain most economies around the world are well into the recovery mode. The USA housing market is almost booming again with prices up 12.5% year on year. The areas that were worst hit in the crash are up 20%.

In Australia most areas are well into recovery with Sydney in particular recording better than 80% success rate at their property auctions for three weekends in a row. Queensland is still the worst performing state not only in Real Estate but in the general economy. There are several reasons for this mostly related to the recent natural disasters. There have been two major floods in South East Queensland and two serious cyclones in North Queensland.

These have been a major financial drain on the economy with some areas still suffering visible effects. However as they say every cloud has a silver lining. Historically, Queensland property prices have closely followed those in Victoria.

Normally any change in the property market will start in Sydney then Melbourne closely followed by Brisbane. This has not happened yet in this cycle. Whilst no one can predict the future we can at least learn from the past. History normally repeats itself, with this in mind then Queensland property prices are set to rise to be more in line to Melbourne prices in the near future. It is also pleasing to see substantial recovery in the rest of Australia. And whilst there has been no recovery as such, in Queensland at least property prices have stabilised.

Hopefully this will silence those doom and gloom merchants such as Steve Keen who continue to gain publicity by predicting a property crash. Their predictions are usually based on totally irrelevant comparisons with other countries.