Inflation is set to fade. Inflation expectations are falling, with implied forecasts dropping to around 2-year lows in the US. Australia’s 3-year bond yield is trading at 2.79 per cent yesterday morning, which is of course a long way below the current cash rate target of 3.60 per cent. I reckon it will be important…
The rental markets across the country continue to be tight, with a high demand for rentals that surpasses the available supply. Consequently, there is an upward trend in weekly rents, and vacancy rates are declining. The pandemic has exacerbated this situation, with vacancy rates plummeting by 50%, highlighting the severity of the conditions in most…
We are all aware that central banks around the world have been hiking interest rates to reduce inflation back to normal levels. The US economy, and particularly the labour market, have been more resilient than most expected. This means the US central bank might have to hike interest rates higher than in other jurisdictions to…
Sydney unit prices are now rising, and I believe will continue to do so for a number of reasons. Firstly, interest rates are at or close to their peak now, with Australia’s 3-year bond yield trading down towards 2.7 per cent, from around 3.7 per cent only a few weeks ago. This largely reflects the…
It has been very well reported that many mortgage holders will soon be paying much higher interest rates when their fixed rate terms expire. It is estimated that $478 billion worth of fixed-rate mortgages is due to expire in 2023. In addition, borrowers may also have to navigate the end of an interest-only term, which…
Australia’s population is booming, with migration levels exceeding the peak of the mining boom. And there are some regions in particular where popularity is surging. Commbank and the Regional Australia Institute’s latest Regional Movers Index shows that there are 5 Australian regions where migration has exploded… by more than 200%. Sea and tree-change shift is…
Although Australia ranks as the sixth largest country globally, its population density is just 3.3 individuals per square kilometre, making it one of the least densely populated countries in the world. Despite the vast land area available, the majority of the population clusters along the eastern seaboard and prefers living in smaller properties near major…
Over the past two decades, property data has reached unprecedented levels. Of course, property investment experts have always used data to help them identify investment-grade properties in locations primed for superior capital growth. These days, though, the abundance of data online makes it seem “easy” for anyone to do the same. The problem with this…
Following on from ANZ reporting a sharp slowdown in spending in March comes some more reassuring figures from Judo bank. All sectors of the Australian economy are now in contraction, suggesting that the interest rates hikes are more than just doing their job. And input price pressures are easing sharply, confirming that the peak inflation…
The World Health Organisation declared a global pandemic on 11 March, roughly corresponding with Australia’s 100th diagnosed case of COVID-19. While this crisis in health had little direct implications for the housing market, there were plenty of responses to the pandemic that did. Unprecedented expansionary fiscal and monetary policy (and subsequent tightening), heavy border closures…
