If you're like me who would rather believe the facts and statistics, you'll know our property market is recovering.
In fact, the Australian property market has entered a new cycle, in spite of all the negative news that the media wants us to believe.
So as a property investor, what should you do next?
Well, to help you decide, here are 3 fun facts to help you in this new cycle of our property markets:
You’ve probably read that the total value of Australia’s 10.9 million residential properties is $9.6 trillion
But a trillion is such an unfathomably large number that it defies intuition.
Here's a way to make a trillion more intuitive:
- 1 million seconds = 2 weeks
- 1 billion (1,000 million) seconds = 32 years
- 1 trillion (1,000 billion) seconds = 32,000 years !!!
So when we say the Australian residential property market is worth $9.6 trillion that’s a very large amount.
Too big to fail!
It's easy to become numb to these crazy numbers as they get tossed around in the media, but it’s also worth remembering that the total outstanding mortgage debt is (only) $2.2 trillion.
- Also read:Latest Asking Prices State by State | Listings and asking prices steady in lead up to market hiatus
- Also read:Latest property price forecasts for 2024 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:Here’s how to avoid these 12 common reasons property investors fail to build a Multi Million Dollar Property Portfolio
- Also read:Heat comes out of the housing market as values across Melbourne dip and Sydney slows | Corelogic Home Value Index
- Also read:Sydney property market forecast for 2024
So despite all the worries about interest rates and mortgage debt – the total loan-to-value ratio of Australia’s housing market is in the order of 23% - that’s not really a concern is it?
According to the Australian Bureau of Statistics on the 28th of May Australia’s population clock passed 26.5 million people.
However only a month later, at the end of June, ABS estimates have been revised and they now believe there are 100,000 more people than they thought were here a month ago.
These high immigration numbers are likely to continue for some years and they are occurring at a time when we just can’t produce enough new housing stock.
These numbers will underpin our property markets and our economy as these migrants have to set up new households and that’s driving housing demand and fuelling our economy.
The stats are in from all the research houses and property prices continued to rise over June – that’s 5 consecutive months.
So if you’ve been waiting for the market bottom, you missed it.
I guess that’s not really a fun fact, is it?