Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
In recent years we have seen a swathe of “initiatives” from state and federal governments with the aim to encouraging and helping more first-time buyers into the housing market. The previous Government claimed they had helped “hundreds of thousands” into the property market. The latest ABS statistics shows that the number of First Time Buyers … Continue reading “The Big Lie About First Homeowner Grants… [Podcast]”
In recent years we have seen a swathe of “initiatives” from state and federal governments with the aim to encouraging and helping more first-time buyers into the housing market. The previous Government claimed they had helped “hundreds of thousands” into the property market. The latest ABS statistics shows that the number of First Time Buyers … Continue reading “The Big Lie About First Homeowner Grants…”
Westpac says Australia’s housing market boom is showing clearer signs of slowing with sentiment pointing to a decline in turnover through the first half of 2022. More importantly, the medium term outlook has shifted materially with an interest rate tightening cycle now expected to see a broad-based correction phase begin later this year, continuing throughout … Continue reading “Pop Goes The Prices?”
New data from the Commonwealth Bank reveals quarterly migration from capital cities to regional areas over the past two years is averaging 15 per cent higher than what is was in the two years pre-COVID 19. A structural break in migration patterns has emerged during the two years of the pandemic. Capital city dwellers moving … Continue reading “The Shifting Sands Of Regional Migration”
Digital Finance Analytics has released the results of our rolling 52,000 household surveys to the end of June, which reveals that mortgage stress rose to 39.1%, compared with 37.5% in May. In addition, rental stress was 39.4%. Moreover, a larger number of property investors with a mortgage (51.3%) are underwater from a cash-flow perspective. This … Continue reading “Mortgage, Rental And Investor Stress All Higher”
The private rental sector has expanded at more than twice the rate of the increase in Australian households in the last two decades. This increasingly diverse form of tenure now houses about one in four of us. Via The Conversation. Australia’s lightly regulated private rental sector means the insecurity of tenants is a key factor … Continue reading “The Rise Of Renters By Choice”
Fitch Ratings forecasts subdued home price growth around the globe over the next couple of years due to a combination of stretched affordability, more challenging macro-economic conditions and macro-prudential measures restricting mortgage eligibility. This is despite falling or very low mortgage rates, insufficient supply in major cities and stable or improved employment levels in most … Continue reading “Fitch Ratings Expects Subdued Global Home Price Growth Despite Low Rates”
The IMF published their latest preliminary findings at the end of an official IMF staff visit (or ‘mission’) to Australia. They recommend preparing for risk from a rapid housing credit upswing, by introducing loan-to-value and debt-to-income limits, and possibly a sectoral countercyclical capital buffer targeting housing exposures. Plus transitioning from a housing transfer stamp duty … Continue reading “IMF On Australia: Risk To The Outlook Remains Tilted To The Downside”
We recently posted Out and About in Wollongong featuring the Jolly Swagman, in which we examined the state of the local economy. The show was supported by some excellent research from Mitchell Grande, a recent Graduate of Politics, Philosophy, Economics (Honours) at the University of Wollongong – concerned with Australian public policy, and especially energy policy. … Continue reading “Out And About In Wollongong”
Here’s the boldest idea the government’s inquiry into retirement incomes should consider but might not: no longer exempting all of the value of each retiree’s home from the pension assets test. Via The Conversation. The test would merely exempt part of the value of retirees’ homes. The change would free-up funds to support other retirees … Continue reading “A Way to Include Homes in the Age Pension Assets Test”