Unsold Housing Supply Soars In Australia — The Collapse Marches On

An interesting report about the state of the housing market in Australia was released today (courtesy of MacroBusiness) — Housing supply and unsold inventories are skyrocketing showing that the collapse in price will follow soon:

Stock on Market for the Month of July 2011

Embargoed until 12.01am Wednesday 10^th August 2011

Figures released this week by property research house SQM Research revealed that residential property listings for the month of July 2011 rose by 13,476 to 377,315 nationally. This is a 4% increase from June 2011, as well as a 22% increase when compared to the same month (July 2010).

All capital cities except for Darwin and Hobart experienced a month-on-month increase, Brisbane and Melbourne experiencing the highest surge in stock- both increasing by 6%.

This means that the banking system in Australia will soon collapse, that their central bank will have to cut the interest rates drastically, and that the AUD will collapse.

How big the collapse? Probably bigger than what we saw in 2008. And it was already quite bad back then: from 0.95 to 0.65 in a matter of 2-3 months.