Australian media reporting USA whomever predicting US Fed to lower interest rates to stimulate troubling economic growth no doubt boosting financial markets: DOW Jones; etc… boosting Australian media to report Australia may follow and or creating Australian borrower thoughts that interest rates will also fall, borrow and buy before house prices raise further.

     Lowering Australian interest rates at a time when building materials are in short supply, I can imagine an increase in people wanting to build houses, submitted to local councils development applications (DA), councils would analyse required building materials to build DA planned houses, submitting analysed results to a centralised entity to compare available building materials to build houses, making decisions on what DA’s are past for council approvals.
     Unless such a system existed 2 happenings could result: Supply and Demand theory raising building material prices to force out people unwilling to finance houses allowing people willing to borrow more money to get into a house, building material suppliers increasing profits…; the other theory being builders supplying quotes to as many people wanting to build a house, that builders can’t complete quoted houses due to shortages of building materials, on realising high demand competitive difficulties on purchasing materials, after collecting as many deposits and forwards progressive payments as possible before customer complain why houses haven’t progressed, remove money from they’re own building companies, declaring bankruptcy, leaving customers with little legal redress to reclaim deposits and forward progressive payments, which may have been the previous building boom period reasons why many building companies are in bankruptcy mode.

     Theory, (democracy politicians are mere front ‘blame game’ people) The real governing authority establishment intentionally planned due to limited supply of building materials causing building company collapses justified by Darwin theory excuses which has happened many times previously, school education conditioning cognitive overloaded stressed memory students to be more listeners of believed to be truthful information (sports lovers) memory scanners having faith in their own judgements conformation of truth rather than independently thinking creating credible theories of their own, such poor thinking behaviours last entire adult life.

     Finance news may inform audiences of many building company bankruptcies while few... though do exist... finance news reports of building material shortages.
     Many building materials are made in China many may be made in other countries based on competitive costs, shipped to Australia, poor Australian company executive decision making, money up front slow supply, too many other countries in demand for same building materials, houses can’t finish what was started, due to supply issues. Maybe why Chinese building company Evergrande collapsed poor executive decision making due to supply issues not being able to finish buildings.

     RBA governor stating interest rates won’t rise until 2024, rates rose in 2022, creating bank borrowing confidence, finance media commentators stating markets are predicting RBA rate cuts depending on inflation figure announcements sharing predictions amongst the many. My 55 years of limited paying attention to events memories on extensive reduced interest rates building boom periods, periods last 2 years; 1977 to 1979; 1987 to 1989; 2002 to 2004… the latest low interest rate boom incentive I suggest started in 2015 (a left over low interest rate from GFC Keven Rudd scares) with 2015 media prompts of rising property prices ending in 2022, an extensive period to previous periods. Previous 2 year periods ended with higher interest rates than what borrowers are experiencing now. My not credited with a university degree in economics prediction is that rates will remain high for longer then periods experienced previously after booms. Finance media are merely offering hope holding listeners attentions, finance media are also messing with people’s decision making abilities.

steve9