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Petrol Prices Down, House Prices, Down, Down, By Peter Bennett
Great news! Petrol prices are way down, dirt cheap, 50 cents a litre in some places, due to geo-politics and the coronavirus, which is an unexpected positive. Now to go on a long road trip. Wait, we are imprisoned in our homes under self-arrest. So, it is all for nothing. At least I can fill up the tank of the old Holden, one, and hope that no roaming gangs milk my tank. No, petrol is too cheap.
And speaking of homes, house prices are a-crashing.
“Coronavirus shutdowns could cause Australian house prices to plunge by 40 per cent within months to levels last seen in 2012 as unemployment triples overnight, an economist fears. Digital Finance Analytics principal Martin North said house prices in Australia's big cities were likely to plummet in coming months, as COVID-19 social distancing rules destroyed the economy. This could see house prices in Sydney fall to $600,000 for the first time since May 2012. 'My base case is a 40 per cent average fall over the next few months assuming a six-month hiatus regarding the virus,' Mr North told Daily Mail Australia. Westpac, Australia's second biggest bank, is now expecting the jobless rate to more than triple to 17 per cent by June, taking unemployment to levels unseen since 1932 at the height of the Great Depression. Its rival ANZ is so worried it is giving home borrowers the option of a six-month holiday on their loan repayments.”
Just imagine if all of this rolls on for six months, as some authorities are saying. As Prince Charles has said, this will be a “strange, frustrating and often distressing experience.” Economic collapse always is.