A housing affordability crisis has been gaining momentum in Australia over the last several decades as the number of people outright owning a home has collapsed by a third as home prices soared 400%.
Aptly, it's called the Parasitic house.
Challenging conditions in the U.S. housing market, along with tighter currency controls by the Chinese government, caused a stunning drop in foreign demand for American homes.
After weak home sales data and re-weakening in mortgage applications (but a modest recovery in homebuilder sentiment), expectations were for a slowdown in starts and permits but the June prints were shockingly bad. Housing Starts dropped 0.9% MoM
Australia's housing market is at risk of imploding. A decade of lowering interest rates to 1% and printing money to drive up home prices has led to dangerous imbalances in real estate markets across the country - that will soon be corrected.
As the luxury real estate market cycles down, now is the time billionaires should catch the proverbial "falling knife," Bloomberg reports.