Aussie first home buyers strike

Seems as if the Aussies have finally said enough is enough. An online campaign to boycott the housing market in protest of excessively high prices has gone viral.

According to Prosper Australia  "The Home Buyers Strike was launched to warn prospective home owners that now is not the time to enter the market."

Prosper and GetUp campaign websites:

http://www.prosper.org.au/2011/03/31/what-we-want-buyers-strike/
http://suggest.getup.org.au/forums/60819-campaign-ideas/suggestions/1595687-first-home-buyers-property-buyers-strike?ref=title
 
Mainstream media has also picked up on this:
http://www.smh.com.au/business/beware-a-buyers-strike-in-property-20110331-1cgwh.html
http://www.smh.com.au/business/property/first-home-buyers-urged-to-go-on-strike-20110330-1cge8.html
http://au.news.yahoo.com/thewest/a/-/newshome/9101416/house-buyers-strike-attempts-to-cripple-the-market/
http://www.heraldsun.com.au/news/more-news/first-home-buyers-strike-growing/story-fn7x8me2-1226030974559
http://www.abc.net.au/news/stories/2011/03/31/3178706.htm
http://www.theglobeandmail.com/globe-investor/personal-finance/personal-finance-reader/rob-carricks-reader-home-buyers-on-strike/article1961202/
 

Bubbles Down Under

I have been a keen observer of the Australian housing market as it presents a curious example of textbook bubble dynamics.

This interesting article over at Seeking Alpha prompted me to revisit the current situation.


The common belief amongst locals is that Australia really is different - some will even list a plethora of justifications for its grossly overpriced housing and begin recalling many clichés they have been conditioned to believe.


Australia has become horrendously expensive compounded by a booming currency, yet the locals, swimming in a tide of record debt levels, seem to keep finding ways of paying for ever increasing houses.


Here are a few pieces that go some ways to explaining the various factors contributing to the bubble that has been described as "Australia's biggest Ponzi scheme":
http://www.abc.net.au/news/stories/2010/09/24/3021480.htm

http://www.morganstanley.com/views/gef/archive/2010/20100817-Tue.html#anchor25c64a02-aa03-11df-8410-d952cf7db8be

http://www.businessinsider.com/the-party-is-over-in-australia-as-debt-and-living-costs-surge-2011-1

http://www.unconventionaleconomist.com/2010/11/battle-of-bubbles-revisited.html

http://brontecapital.blogspot.com/2010/12/fish-and-chips-in-kiama.html

http://www.nickhac.com/2011/01/why-do-consumer-goods-in-australia-cost.html


Is this country one of the last bastions of mass delusion? The evidence suggests it is, many Aussies beg to differ. What say you?

Not out of the woods yet

Economic reports continue to point to the downside with the latest data showing worse than expected numbers for existing home sales:

Stocks lose big on home sales shock