1, Official cash rate will deciline from 6% to 4.5% by June quarter of next year
2, Unemployment rate
4.3% in Sept 2008
5.25% in June 2009
6.25 - 6.5% by the end of 2009
3, Inflation
4.7% in Sept 2008
3% by the end of 2009
4, House price
Unlike USA, UK Australia does not have an underlying over supply of housing: nor is effective supply being boosted by large numbers of dwellings on the market for sale at any price. Significant interest cuts and first home grants will benefit the house market but it may need about 6 month to see the update market to go to north.
I just receive this report from ANZ Bank. Westpac Bank send me their report as well.
After the October 1987 sharemarket crash, property prices in the major capital cities rose by around 20% each year in 1988 and 1989.
The same thing happened after 2000 - 2001, when the burst dotcom bubble and 9/11 fuelled another major sharemarket adjustment. Nervous investors turned to residential property, and the market in Brisbane, Sydney and Melbourne increased by more than 15% per year in 2001 and 2002.