The impact of a housing sector downturn shouldn’t be underestimated
Signs are accumulating to suggest that Australia’s housing sector upturn is on its last legs. Yet due to the housing sector’s relatively small direct share of the economy, there is a risk that many analysts will underestimate the likely downside impact, which could be significant due to both the sector’s cyclicality and its relatively important multiplier effects. One obvious and timely sign that the housing upturn is losing its steam is Sydney auction clearance rates. To read more visit: (VIEW LINK)
Author, columnist, investment strategist and macro-economist. Previous roles at Federal Treasury, OECD, Macquarie Bank and AFR. I develop economic insights and portfolio construction strategies for BetaShares' retail and adviser clients.