Dr Andrew Wilson, Chief Economist of www.MyHousingMarket.com.au is widely regarded as Australia’s leading property economist.
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…
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 activity continued to rise over January following the recovery surge in post-lockdown activity recorded over the final months of 2021. Clearly Covid restrictions and uncertainties have failed to dampen demand for housing with lending still tracking at record levels. The ABS reports that the value of home loans seasonally adjusted (excluding land and…
The RBA has predictably confirmed that there will be no change to official interest rates for March. The Bank has also importantly reiterated its established position regarding the future direction of rates, with rate rises clearly off the agenda for the foreseeable future. The Bank stated in its March report that “The Board will not…
Surging inflation and stubbornly low wages growth has acted to produce a sharp decline in real wages growth with the significant cost of living implications for consumers. The ABS has reported that the Wage Index increased by 0.7% over the December quarter – the highest quarterly growth rate since March 2014. Annual wages growth however…
Wages growth has predictably increased over the December quarter as the national labour market recovered from the impact of severe mid-year covid restrictions. The ABS national Wage Index seasonally adjusted rose by 0.7% over the December quarter for an annual growth rate of 2.3%. This was marginally higher than the September quarter increase of 0.6%…
A sharp decline in the national jobless rate has predictably resulted in another wave of speculation suggesting the official interest rates may rise significantly sooner than the RBA’s current outlook. According to the ABS, the national unemployment rate fell to 4.2% [seasonally adjusted] over December – the lowest rates is August 2008. This low unemployment…
The recent mass interstate exodus by Victorians is continuing, with annual totals now at the highest levels since the recession of the early 1990s. By contrast, interstate migration into Queensland continues to rise, with that state remaining clearly the most popular destination for relocating Australians The ABS reports that Victorian net interstate migration fell by…
The Australian labour markets bounced back hard over November following the easing of the recent severe lockdown restrictions in Sydney and Melbourne. The ABS reports that the unemployment rate (seasonally adjusted) fell sharply over the month, down from 5.2% to 4.6%, the lowest result since the 13 year low 4.5% recorded over August. Employment growth…
National home lending has continued to fall over October despite the easing of severe lockdown restrictions in Sydney and Melbourne. The outlook for lending activity remains mixed with rising affordability barriers and the satisfaction of pent-up demand acting to reduce home-buying activity. The ABS reports that the value of home loans seasonally adjusted (excluding land…
