Do you remember 1991?
The Reserve Bank keeps a close eye on the real estate market and in a speech today their Deputy Governor produced the graph below. Do you remember the year Paul Keating ousted Bob Hawke for Australia’s top job, declaring we were in the “recession we had to have”? Or to help take you back try this – one of 1991’s biggest music hits was Vanilla Ice with “Ice Ice Baby”! Yes it was a long time ago…
According to the RBA 1991 was the last time we had such a small percentage of Australia’s homes changing hands. They say the turnover’s halved from where it peaked in the early 2000’s with just 1 in 25 homes being sold at the moment, and the property and finance industries most effected.
Now nobody’s expecting sympathy for real estate agents and bankers! But with our homes as our biggest assets and the market feeling less “liquid”, it’s no surprise Australians are feeling less inclined to spend on anything, even if our total wealth is still high. We’ll watch the RBA’s moves with interest.
For the record our buyer enquiry is definitely stronger already in 2012.