The Next Chapter In The Household Financial Stress Story…

Ahead of our upcoming live stream on Tuesday at 8pm Sydney (12th December) I run through our latest analysis based on our surveys, We see that many households are in a pickle with regards to cash flow, and over time this can lead to significant consequences, with defaults expected to rise in the months ahead.

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Today’s post is brought to you by Ribbon Property Consultants.

DFA Live Q&A HD Replay: Latest Household Financial Stress Modelling And Analysis

This is an edited version of a live discussion about our latest financial stress modelling and analysis.

Original live stream here: https://youtube.com/live/bBujFeWj6JM

If you want a specific post code dataset, contact me via the DFA Blog. https://digitalfinanceanalytics.com/blog/

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Housing Affordability Stinks…

We look at the latest analysis of housing affordability, based on a range of data, and conclude that it has rarely been worse. In addition, some players are being highly selective in the way they present the data, understating the true picture for many households. We wonder why?

http://www.martinnorth.com/

Go to the Walk The World Universe at https://walktheworld.com.au/

Today’s post is brought to you by Ribbon Property Consultants.

DFA Live Q&A HD Replay: Household Finances And Mortgage Stress Update

This is an edit of a live discussion using data from our core market model. We look at the latest mortgage stress data, and answer viewers questions.

Which post codes are most impacted, and what are the implications?

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Caveat Emptor! Note: this is NOT financial or property advice!!

DFA Live Q&A HD Replay: Latest Household Financial Stress And Analysis

This is an edit of my latest live show, as I walk through our latest financial stress analysis, to end August. Which post codes are most impacted, and what are the potential outlook for prices and defaults?

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More Households Buckle Under The Strain…

Almost one in three Australians are struggling to make ends meet, as cost-of-living pressures push more people to renegotiate bills, cut back on groceries and access their superannuation early. And one in five hit up friends or family as times tighten.

About 30 per cent of Australian adults find it difficult or very difficult to get by on their current income, according to a quarterly poll by the Australian National University.

Borrowers have been hit with 12 interest rate rises since May 2022 as the RBA tries to get on top of the most acute inflation outbreak in decades.

Financial stress is on the rise, with two-fifths of renters finding it difficult or very difficult to get by on present income amid a nationwide surge in rents.

But the biggest increase in stress over the past year was among people with a mortgage, who have borne the brunt of the fastest interest rate tightening cycle in a generation. About three in 10 borrowers are finding it tough.

None of this should be a surprise to followers of this channel, as I have been reporting the steady rise in cash flow stress in recent times, to new highs. My latest data to end August will be out in the next few days, and the trends continue to deteriorate.

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Today’s post is brought to you by Ribbon Property Consultants.

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Its Edwin’s Monday Evening Property Rant!

More from our property insider Edwin Almeida as we look at the idea of building up, not out, prefabricated housing, poor quality rental property, and the mythology of property listings. And at the end, a real horror show!

http://www.martinnorth.com/

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Household Financial Stress Update: July 2023

A quick update from our latest modelling which shows financial pressures continue to build across Australia.

You can join me for a live discussion about this analysis, and look at specific post codes next Tuesday. https://youtu.be/oiiDCfxiwPU

http://www.martinnorth.com/

Go to the Walk The World Universe at https://walktheworld.com.au/

“Hidden” Financial Hardship Is On The Rise!

New research from NAB suggests the average Australian feels only “moderately” stressed about money or making ends meet, but also only “moderately” comfortable they are on top of their finances, could manage a major unexpected expense, and are on track to have enough money for their future financial needs. But averages mask.

They say over 4 in 10 (43%) Australians experienced some form of financial hardship in Q2, and is now up from 29% in early-2022 amid rising inflation and higher interest rates. Money is “very much” a source of stress for 1 in 3 Australians, and 1 in 4 are struggling “very much” to make ends meet.

Financial hardship can happen at any time, and is often the result of sickness, job loss or over-commitment, but rising interest rates and cost of living is now also causing financial distress in more households.

The worsening financial situation reflects a number of factors. First, the roughly one-third of households with a mortgage are obviously being smashed by the RBA’s 4.0% of interest rate hikes, which has lifted variable mortgage repayments by about 50%. The situation facing this cohort will only worsen if the RBA hikes further. There are also around 500,000 fixed rate mortgages that will expire over the second half of this year, which will reset these mortgages from rates of around 2% to variable rates approaching 7%:

Second, the roughly one third of renting households are experiencing explosive rental growth, especially across the major capital cities: Rental inflation will remain turbo-charged given the federal government is running the biggest immigration program in history amid falling housing construction rates:

Finally, overall cost-of-living pressures are impacting all cohorts, driven by the hyperinflation in energy (gas and electricity) prices along east coast Australia.

3 in 10 Australians do “not at all” feel they could manage a major unexpected expense, and 1 in 5 do “not at all” feel on top of their day to day finances, or believe they are on track to have enough money to provide for their financial needs in the future.

http://www.martinnorth.com/

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Wait A Rate – But For How Long? With Steve Mickenbecker…

Steve from Canstar and I discuss the latest RBA decision, and its implications, and explore the impact on households and their budgets. What can be done?

https://www.canstar.com.au/team-members/steve-mickenbecker/

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