SQM: House price boom won’t save economy

Photo: The Boom and Bust Report

SQM: House price boom won’t save economy

By Leith van Onselen in Australian EconomyAustralian Property

In an interview with CNBC, SQM Research’s managing director, Louis Christopher, claims that Australia’s authorities are hoping the rise in Australian dwelling values will feed through to greater confidence in the economy.

However, Christopher has “serious questions” about that view because the housing recovery is not creating more jobs. Instead, unemployment is set to rise, driven largely by the crash in dwelling approvals.

Louis Christopher is 100% right of course. And these exact points have been made in MB’s Christmas Member’s Report, released today.

Leith Van Onselen

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

SOURCE: https://www.macrobusiness.com.au/2019/12/sqm-house-price-boom-wont-save-economy/