Homes Bust wthin 3 Years
Sep 28th 2003, 4:29 pm
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Homes Bust wthin 3 Years
http://www.smh.com.au/articles/2003/...687670858.html
Homes bust 'within three years'
By Sharon Kemp
September 29, 2003
In a long-term forecast to be released today, economic forecaster BIS Shrapnel warns of sharp rises in home loan rates and the bursting of the housing bubble within three years.
BIS Shrapnel foresees economic growth rising steeply to average almost 5 per cent in 2004-05 and 2005-06 before triggering a rise in mortgage rates into double-digit figures and a fall into recession.
The report comes as Federal Treasurer Peter Costello prepares to reveal this week how the budget finished in 2002-03.
In the May budget Mr Costello forecast a surplus of $3.9 billion but economic forecaster Access Economics predicts it will be as high as $6 billion despite war, drought and SARS.
BIS Shrapnel's two-year outlook for Australia shows a sharply accelerating economy fuelled by large domestic investment as businesses increase their production capacity to meet rising levels of demand.
Homes bust 'within three years'
By Sharon Kemp
September 29, 2003
In a long-term forecast to be released today, economic forecaster BIS Shrapnel warns of sharp rises in home loan rates and the bursting of the housing bubble within three years.
BIS Shrapnel foresees economic growth rising steeply to average almost 5 per cent in 2004-05 and 2005-06 before triggering a rise in mortgage rates into double-digit figures and a fall into recession.
The report comes as Federal Treasurer Peter Costello prepares to reveal this week how the budget finished in 2002-03.
In the May budget Mr Costello forecast a surplus of $3.9 billion but economic forecaster Access Economics predicts it will be as high as $6 billion despite war, drought and SARS.
BIS Shrapnel's two-year outlook for Australia shows a sharply accelerating economy fuelled by large domestic investment as businesses increase their production capacity to meet rising levels of demand.
