Shane Oliver is the big cheese at humongous Australian fund manager AMP
- Head of investment strategy and Chief economist:
plunge in auction clearance rates is pointing to more downside for Sydney property prices
- as credit tightening,
- rising supply,
- reduced foreign buying,
- switch from interest only to principle and interest,
- potential tax changes,
- FOMO->FONGO
create a bit of a perfect storm
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The point about falling prices is fears it will weigh on consumer confidence at thus spending and thus the economy. Australia has been stuck at slow growth for quite some time already and that doesn't look se to change too much any time soon. Still, slow growth is better than no growth (or worse).
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(ps. someone will have to help me out with FONGO, I can't keep up with these kids
fear of not getting out?
)
