WTF?
National house prices rose 0.2% in October, the second month of growth after five months of falls, with economists saying it could signal recovery in the market.
The national median house price is $811,662, Cotality NZ’s most recent data shows.
The chief property economist at Cotality, Kelvin Davidson, was measured in his outlook, saying the growth in October and September has been “reasonably small in the grand scheme of things”.
“It’s a cliche, but upturns obviously have to start somewhere, and the recent emergence of small increases in property values would certainly be consistent with the falls in mortgage rates over the past year or so.
I don’t think we have Economic Journalists anymore, I think we have cheerleaders for capitalism.
Todays’s highest unemployment rate in 9 years would be higher if 73 000 hadn’t already left the country.
Māori unemployment is 10.5% and Pacifica is 12.1%
Capitalists live in a fantasy land where everyone has to be super positive because money is so emotional and when people lose it thanks to ideological experiments from Right Wing Governments, any business journalist who critiques too negatively gets their balls kicked in for spooking the stupid consumers.Maybe, just maybe the terrible decision to smash the Infrastructure Pipeline Labour had built for public housing, hospitals, schools and roads in 2024 had a cascade impact on the economy that has scarred the market so badly that we are actually in for far worse damage than Laim’s cheerleading can acknowledge.
Put aside the inflation and Unemployment rates that will dominate news headlines, look at the raw economic data.
Maybe those ‘green shoots’ are really the dried snot of vacant hope?
The Reserve Bank made a dramatic 50 point drop last week in the OCR as more and more economic data suggests the economy is in far worse shape than feared, this isn’t prudent management it’s naked desperation and panic.
The latest leading indicators for the economy suggest a darkening outlook for September quarter GDP. The BusinessNZ-BNZ PSI survey out yesterday showed the services sector that makes up over 60% of the economy contracted in September, its 19th-consecutive month of contraction.
The matching BusinessNZ-BNZ PMI survey for the manufacturing sector on Friday also showed a contraction.
The Herald doesn’t have much to say about that and they don’t note any of the following…
The NZ Economy is built on selling each other over inflated houses and pretending that’s wealth, but again, RNZ and Stuff are pretty quiet on that front.Overall migrant arrivals dropped 16% to 138,600, while departures increased 13% to 127,900 – the economy is so bad that now even the migrant workers are fleeing!
Treasury papers show we have an $11.1billion deficit, but the Government has given away $19.5b to landlords, the rich and tobacco companies – if they hadn’t done that we would have an $8.4b surplus – this Government has manufactured a debt problem and called that an economic plan.
The reality is that the economy is about to get far, far, far worse and none of this Government’s austerity agenda will make any of that pain easier to take.
The ‘green shoots of recovery’ that real estate pimps like the NZ Herald are so desperate to promote looks more like dry snot wrapped in hollow optimism.
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The reserve bank cutting interest rates is a sure sign the economy is buggered .Soon it will be lower than it was in the pandemic .
We are the lucky country now, lucky 200 people a day are leaving so the unemployment figures dont look as bad as they really are .