Each month the RBA releases an updated Chart Pack, so let’s have a quick look at 5 of them. You can download the rest of them here.
First up, household saving ratio is now beginning to fall.
Aussies are enjoying lower mortgage repayments and are beginning to spend (retail) and invest (shares, property).
Building approvals are now at close to 20 year highs.
This is great news for the rebalancing of the Australian economy. Property buyers should now be very wary of areas of apartment oversupply.
Household debt levels starting to turn up again a little, but essentially remain where they have been for most of the last decade.
Share markets and property markets are rising,
Thus, we’re getting wealthier again.
Housing loan approvals are soaring.
Is there just a hint of a slowdown there?
The AFG numbers I analysed in more detail here said “no slowdown yet evident in Sydney”, but perhaps elsewhere things may cool a little.
And finally, dwelling prices.
Regional areas perhaps picking up a bit now in aggregate, Melbourne continuing to defy gravity, Brisbane on the up and up…and Sydney housing to the moon.
Buyers in Sydney, as noted in several previous posts, need to be fully aware of which sectors of the market are oozing risk, and which have not yet taken off.
The inner west has gone gangbusters for some years now, for example, and several other sectors have blown off now too. Do your due diligence.