The RBA has followed up its shock May official rate rise – the first in over a decade, with another increase over June – but this time by an extraordinary, near-record 0.5%. June’s rate increase is the highest since the same result recorded in February 2000 and the second-highest on record behind only the 0.75%…
Articles by Dr. Andrew Wilson
Dr Andrew Wilson, Chief Economist of www.MyHousingMarket.com.au is widely regarded as Australia’s leading property economist.
Home lending activity declined sharply over April with buyer activity sidelined as a result of holiday distractions, the looming federal election and the increased likelihood of higher interest rates impacting confidence. Declining affordability as a result of recent strong home price growth has also acted to reduce buyer capacity and decrease activity levels. The ABS…
Shortages in capital city rental markets have deepened over May with already low vacancy rates continuing to fall and high rents still rising strongly. The national weekly median asking house rent has now increased by 16.8% over the past year to $537, with the April house vacancy rate steady at 1.2%. Median asking rents for…
The latest economic data released by the ABS has revealed a continuation of the underwhelming results reported since the RBA surprisingly increased official interest rates last month for the first time in over a decade. The ABS revealed that GDP increased by a moderate 0.8% over the March quarter – well below the 3.3% increase…
Wage growth levels have remained steady this year with annual increases trickling up marginally. Real wage growth (the difference between wages and inflation) however has crashed by a record low level – with consumers now also confronted with the extra costs of higher interest rates. The ABS reports that the Wage Index seasonally adjusted increased…
Capital city rental markets have continued to tighten over April with the record low vacancy rates still falling, predictably placing more upward pressure on already high rents. The national weekly median asking house rent has increased by 14.8% over the past year to $521, with the April house vacancy rate declining to 1.2%. All capitals…
Australia’s inflation rate has predictably increased sharply again over the March quarter to the highest levels reported since the introduction of the GST in 2000 impacted prices. The ABS reports that the headline CPI increased by 2.1% over the quarter for an annual rise of 5.1% – well ahead of the 1.3% quarterly rise and…
The RBA has dramatically changed its recent guidelines for a rise in official interest rates, indicating that higher rates will now likely come sooner rather than later. The RBA has consistently stated that a rate rise was dependent on inflation being “sustainably within the 2 to 3 per cent target range”. The minutes of the…
Home loan affordability for first home buyers continues to track at low levels, reflecting the ongoing impact of high and rising home prices. The latest results for the February quarter from the My Housing Market First Home Buyer Home Loan Affordability Index however reveal a slight improvement in national affordability. The My Housing Market First…
Rental vacancies have continued to decline over March from already low levels, with rent rises providing more bad news for tenants. The national weekly median asking house rent has increased by 12.4% over the past year to $509, with the March house vacancy rate declining to 1.2%. All capitals have recorded significant increases in monthly…