It was falling house prices. The problem is, once again, a tangle of energy issues, the RBA, and house prices but this time it looks much more combustible. In short, at today’s prices annualised, the energy shock is $51bn for the next year in utility bills. There’ll be massive demand destruction in energy and many other factors to change the outcome (including a likely global recession). I suspect it will be consumption and house prices that will crater together in the next few months under the combined bombardment of an income and wealth shock.

Source: The Guardian June 09, 2022 03:01 UTC