Experts predict that falling housing prices will force retailers to get rid of their prices as sales fall

Experts warn that falling housing prices in Australia could lead to a drop in retail spending

Why should I wait six months to buy TVs, refrigerators and washing machines? Expert warns that falling housing values ​​in Australia will force retailers to lower their prices.

  • Experts predict that the fall in housing prices could lead to a drop in retail spending
  • A senior economist said that the cost of household goods will plummet
  • The prices of national homes fell by one percent in the last year, show the figures of dominance

Monica O & # 39; shea for Daily Mail Australia

Experts warn that falling housing prices in Australia could lead to a drop in retail spending, which could force stores to reduce the cost of household items such as televisions, refrigerators and washing machines.

From January to June, domestic housing prices fell by one percent, the domain figures have revealed.

Sydney housing prices fell an average of 4.5 percent over the same period of time.

AMP senior economist Shane Oliver told Daily Mail Australia on Sunday that falling prices and approvals will lead to a decline in retail spending.

Experts warn that falling housing prices in Australia could lead to a drop in retail spending

Experts warn that falling housing prices in Australia could lead to a drop in retail spending

AMP senior economist Shane Oliver told Daily Mail Australia that a more difficult retail environment can lead to low retail price inflation as demand for household items falls (stock image)

AMP senior economist Shane Oliver told Daily Mail Australia that a more difficult retail environment can lead to low retail price inflation as demand for household items falls (stock image)

AMP senior economist Shane Oliver told Daily Mail Australia that a more difficult retail environment can lead to low retail price inflation as demand for household items falls (stock image)

"As time passes, and as the housing cycle continues to fall and the completions also fall, I expect domestic goods to become negative as in Canada," he said, referring to a similar decline seen in retail spending in the United States. Foreign.

He said that a more difficult retail environment can lead to low inflation of retail prices as the demand for household goods falls.

Commonwealth Securities Senior Economist Ryan Felsman told Daily Mail Australia that the situation in Canada is different from that in Australia.

The Bank of Canada has raised interest rates at least four times in a year.

From January to June, domestic housing prices fell by one percent

From January to June, domestic housing prices fell by one percent

From January to June, domestic housing prices fell by one percent

Felsman said the robust labor market and the increase in stock market shares will encourage people to spend more.

"Many jobs have been created in the last 18 months and retail spending has increased as a result," he said.

He said that as the prices of goods go down, people would be encouraged to spend more.

"People spend more when everything is cheaper," he said.

Commonwealth Securities Senior Economist Ryan Felsman told Daily Mail Australia that the robust labor market and the increase in stock market shares would encourage people to spend more (stock image)

Commonwealth Securities Senior Economist Ryan Felsman told Daily Mail Australia that the robust labor market and the increase in stock market shares would encourage people to spend more (stock image)

Commonwealth Securities Senior Economist Ryan Felsman told Daily Mail Australia that the robust labor market and the increase in stock market shares would encourage people to spend more (stock image)

Ad

(function() {
var _fbq = window._fbq || (window._fbq = []);
if (!_fbq.loaded) {
var fbds = document.createElement(‘script’);
fbds.async = true;
fbds.src = “http://connect.facebook.net/en_US/fbds.js”;
var s = document.getElementsByTagName(‘script’)[0];
s.parentNode.insertBefore(fbds, s);
_fbq.loaded = true;
}
_fbq.push([‘addPixelId’, ‘1401367413466420’]);
})();
window._fbq = window._fbq || [];
window._fbq.push([“track”, “PixelInitialized”, {}]);
.