The Reserve Bank is responsible for maintaining monetary policy that encourages economic growth and low unemployment while keeping inflation under control. The RBA uses interest rates to keep these three economic indicators in balance, so in which direction will the RBA move interest rates? Despite all the current focus on inflation, if unemployment rises and…
Many experts assure us that past performance is a good indicator of what to expect in the future. I have investigated how they rely on past performance to make their forecasts and have come across a huge contradiction. Some analysts claim that a history of strong growth is a reliable predictor of more growth to…
Which dynamics predict future property performance? Despite the obvious importance of making accurate property market forecasts, the industry is rife with ineffective and even inaccurate prediction methods. So let’s look at the three key dynamics that predict which way prices are likely to move. Experts utilise many different performance theories and metrics to make their…
When it comes to offering opinions on the state of Australia’s housing market, many commentators like to compare cities with cities. It might be a case of “Brisbane rising quickly” while “Perth takes a breather” or “Melbourne’s housing market remains flat”. The comments are applied to each city in its entirety, rather than checking what’s…
The Housing Industry Association has called on the Australian Government to increase the number of skilled workers from overseas in order to achieve the National Housing Accord’s goal of building 1.2 million new homes, but this will only result in a “Catch 22” issue. The catch is that a policy that encourages larger numbers of…
Have the Perth and Adelaide housing markets peaked? And if so, where will we find the next boom markets? The answer lies in who is doing the buying and selling. Experts commonly refer to a city’s median housing price when describing its performance, but this is misleading. The median price lumps all buyers and sellers,…
Real estate agents perform a valuable job for both buyers and sellers, but it’s their aim to find the most buyers for properties they have listed, so their descriptions can often be a little on the optimistic side. Here’s our guide to how agents may answer your questions, and the real meaning that could lie…
The two most significant demand dynamics of our housing markets are population growth and purchasing power, but they can work in very different ways, often creating confusion in the process. Most experts link population growth to housing market performance because every new household needs somewhere to live. While this is certainly correct, this demand can…
People have enjoyed the companionship of animals for thousands of years, but can we protect their futures by leaving them property in our wills? Around two-thirds of Australian homes have a pet of some sort. Not only do dogs and cats protect our homes from unwelcome visitors, but they also provide fun, and friendship and…
It’s Melbourne Cup time, but there’s a race of much greater significance to property investors – it’s this year’s Housing Market Cup. You’ve studied the form, got some tips from mates at work and heard about a lucky few who really cleaned up, but will you be backing the winner of this year’s Housing Market…