Australia slides into a “per capita recession” Key points Australian growth slowed even more in the December quarter. Growth may bounce back a bit this year, but the housing downturn will likely constrain it to around 2- 2.5%. As a result, unemployment is likely to drift up and wages growth and inflation remain lower for longer. The RBA is on track to cut rates this year and the housing downturn will likely see …
Aussie housing facing strong headwinds The Australian housing market is in a more precarious position than the United States was before the global financial crisis (GFC), according to a new analysis from AMP Capital which shows households have frittered away record income rises by taking on debt to buy housing. Our mortgage-related debt is higher, property gross rental yields lower (suggesting over-valuation) and our prevailing interest rates are much lower leaving less buffer for interest …
Has the housing bubble burst? In some states the property market is up, while in others it’s down – if you’re confused by what’s really happening to Australian house prices, read on. Driven by falling markets in Sydney and Melbourne, national house prices fell 0.1% in May, according to figures from property analytics group Core Logic. For the year from 31 May 2017 to 31 May 2018, prices were down 0.4% marking the first annual fall …
How does housing affordability in Australia rank on world stage? When it comes to housing affordability, our capital cities haven’t fared well. There are 28 ‘severely unaffordable’ major housing markets that exist internationally1—and of those, Sydney, Melbourne, Adelaide, Brisbane and Perth all rank among the top 212. These are the findings from the 2018 Demographia International Housing Affordability Survey, which assesses housing markets across nine countries including Australia, Canada, China, Ireland, Japan, New Zealand, Singapore, the …
After the Australian household debt and east coast housing booms – interest rates on hold until 2020 Will Australian interest rates ever go up? While the global economy is seeing its fastest growth in years and the US Federal Reserve has increased rates five times since December 2015 and is on track for more hikes this year, the Reserve Bank of Australia (RBA) has now left interest rates on hold for a record 21 months …
