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A lot can happen in one week in our property markets, can’t it?
So here’s a look back at some of the things I read or learned this week, that I believe you should also know.
1. Here’s what’s happening to Australia’s population thanks to Covid
The records continue to tumble when it comes to the impact of the pandemic on Australia’s population.
The imposition of international border restrictions from March 2020 saw Australia’s population grow by 35,700 people – the slowest pace since at least June 1981 when ABS records began.
Net overseas migration was 95,300 over the year to March, the first decline since 1946.
Unfortunately, the slowest population growth in a century and an extended period of international border closures is constraining our economy, particularly the labour market, given Australia’s aging population.
2. Housing boom sets 17-year sales record
Not only have property prices taken off over the past year, but the number of homes changing hands has also hit the highest level since 2004.
Corelogic estimates there were almost 598,000 house and unit sales across Australia over the year ending August 2021.
This is a 42% lift on the annual sales of the previous 12 month period and 31% above the decade average and 24% higher than the 20-year average.
3. Rate hikes are further away than you think
A number of the regular property pessimists are doing the rounds of the media chasing headlines telling us how many Australians will fall into mortgage stress when interest rates go up; and that this will occur sooner rather than later.
However, Governor Lowe once again asserted that this won’t happen any time soon.
He said he finds it difficult to understand why the market is pricing in rate action 2022 and 2023 and confirmed that interest rate will only rise when inflation hits the target of between 2.5% to 3% and stays there for some time.
“ …the Board has said that it will not increase the cash rate until actual inflation is sustainably within the 2–3 per cent target range. It won’t be enough for inflation to just sneak across the 2 per cent line for a quarter or two. We want to see inflation around the middle of the target range and have reasonable confidence that inflation will not fall below the 2–3 per cent band again.”
RBA Gov Lowe: Delta, the Economy, and Monetary Policy
Clearly, our rising house prices are not going to affect the RBA’s interest rate decisions.
4. Queensland is in danger of being ‘loved to death’
More than 30,000 Australians relocated to the Sunshine State in 2020, a 15-year high.
In the three months to last December, almost 5000 moved north just from Sydney and Melbourne.
With a population of roughly 3.7 million, Queensland’s southeast corner is already the nation’s fastest-growing zone.
Forecasts suggest it will top five million by the middle of the next decade.
Brisbane’s median house price of $678,000 is less than half of Sydney’s and on par with that for Adelaide and Hobart.
Yet by the time the 2032 Olympic Games come to town, the figure is likely to be $1.5 million.
5. Lift off for new listings, as Australia’s spring selling season begins in earnest
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