costs go up. we ve been seeing it before the fed was making the dramatic moves that i wouldn t call it a dramatic fall down in housing activity but signs that it slipping a bit. more after this. you can never have too much of a good thing. and power. .is a very good thing. i booked our hotel on kayak. it s flexible if we need to cancel. cancel. i haven t left the house in years. nothing will stop me from vacation. no canceling. (laughs) flexible cancellation. kayak. search one and done.
the favor excuse me, it was more in the favor of the seller. now, it s going to start shifting. so buyers and sellers are going to have more of a difficult time adjusting to this and we re going to see much weaker housing activity and house prices. there s going to be a bit of adjustment, to make sure that the economy does not overheat as christine romans has described it. as you say that interest rates will go back to normal rates. what are normal rates because they were so low for so long? good question, and a debate. we ll have to see exactly where things land as interest rates do rise and the economy adjusts. but having said that, the federal reserve thinks that for the rates that they control, the federal funds rate which is now as i said at zero, in a well-functioning economy, in the long run, it should be about 2.5%. we need to go from zero to 2.5%. historically, the fed has raised rates in times like these by
Property market update: Melbourne, January 2021
By Zarah Mae Torrazo
11 February 2021
|
1 minute read
SHARE
Australia’s economy is recovering faster than anticipated and it seems Victoria is leading the way.
In the last quarter of 2020, Australia’s property market showed signs of rebounding after being slowed down by the lockdowns put in place to combat the coronavirus pandemic, which triggered an expected economic recession. Deloitte Access Economics forecasts that Australia will expand by 4.4 per cent this year.
Property markets kicked off the year with a strong showing, with some experts even calling it a “property boom” as property values in all capital cities rose in January.
chooses. it is likely that as the weather warms, the economy will improve. it won t be where we want it to be, where we would like it to be, but it will be better than next year. if the fed is smart, it will stay the course, continue tapering, because it s run its useful life, allow equity markets and bond markets to go through the inevitable adjustment, because we re going to see a lot of housing activity, pickup truck sales and car sales overall, and that will carry us forward. let me go to dan. number one, peter is making it clear, he is angrier about the economy than you. number two, he s willing to give you the 40,000 public sector jobs. we don t get the jobs to the people, but for the hypothetical, respond to that and the fed. i will pocket those jobs and take the revisions we re going to get. you hear that, peter? jobs will be revised in the next two months, december from 74,000 to 75,000, november was
in u.s. stocks right now. take a look at the dow, dropping right at the open. alison kosik at the new york stock exchange, what will the damage be today, do you think? reporter: well, right now the damage is pretty stiff right now. the dow down 86 points. at this point, the dow is erasing all of wednesday s gains. investors are still on edge about the debt situation happening in cyprus. you know, the country, it s got until monday to sort itself out or face the possibility of a financial collapse. some decent numbers out of the housing market, not really helping to lift stocks out of that dour mood. sales of previously owned homes, they rose 0.8% in february. that coming in a bit weaker than forecast. but, still, if you look at sales, they re up quite a bit from this time last year, up 10%. if you look at median prices, they rose to $173,600 in february. this reading, carol, is really one of the most important housing reports that wall street gets, because existing home sales account