Australian Housing

It’s easy to get caught up in all the hoopla when it comes to Australian housing.

Is it in a bubble? Ready for collapse? Or can it even go higher?

How You Can Read the State of Australian Property

One way to get to the real story is to follow listed companies that are tied to the Australian housing market.

If housing is stretched then the first signs of stress will show up there as softening demand. And that softening demand will show up in the company price chart. Guaranteed!

But if stocks in this sector are mostly making new highs, that tells you company revenues are growing. That also tells you that Aussie housing still has steam to run.

The latest news on the Australian Housing Market

This is one way to disentangle yourself from all the misinformation about the state of Australian housing. At Markets & Money we keep a close eye on these indicators. And we let you know exactly what the outlook is for the Aussie housing market.

 

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Australian mortgage application form
The Switch to a Buyer’s Market
The housing market is very different from a few months ago. Back then, buyers were getting into frenzied auctions, spending more than what they had budgeted for and properties were going above the reserve. In other words, we could be seeing the switch from a seller’s to a buyer’s market.
House in a hand. Representing falling property prices.
Magnified Expectations and Bloating Debt
Meanwhile, wage growth has been plummeting. It is now just above 2%. So it’s not surprising that in recent years households have been getting into larger mortgages to get into the frenzy...and consequently, higher debt. And we are starting to see an increase in mortgage stress.
Your Early Warning Sign for the Next Real Estate Peak
Your Early Warning Sign for the Next Real Estate Peak
It’s very easy to get caught up in all the day-to-day noise. The S&P 500 was up a hundred points, the Dow Jones down six hundred points, and on it goes. The stock market will show volatility from time to time. Housing starts can be a good way to gauge how the economy is tracking.
household debt at an all time high in australia
No Taming the Debt Beast
Wages not growing and property prices at record highs mean that household debt is reaching record highs. And household debt is already becoming a burden that could restrict growth. Australian household debt is at one of the highest in the world, at almost 200% debt to income ratio. Household debt affecting consumption is a big worry for the RBA
dollary symbol holding up property market
Property Market Incentives are Drying Up
Easy credit and low interest rates have meant a booming housing market. What do you think a cut on credit and higher interest rates will mean for the housing market? Developers are now offering incentives to buy property. Another sign that the property market is slowing.
Interest-only mortgage
The Interest-Only Craze Is Setting Us Up for Disaster
Interest-only mortgages may seem quite attractive at first. For one, opening payments are lower. This makes the loan look more affordable for people worried about taking on a large mortgage. And with house prices climbing in recent years — much faster than inflation and salaries — that is a worry.
Australian exports economy
The Radical Shift Hitting Aussie Exports
With our wide-open space, clean air and natural wonders, Australia is an exporter’s dream. It’s no surprise that our natural resources are coveted worldwide. However, the export industry in Australia also has a dark side…
air rights
Paved Paradise and Put Up an Apartment Block
‘Air rights’ weren’t a thing in Australia until a few years ago. Even then, it mirrored the US, where air rights were mostly protecting the space around important buildings. Of course, things change. Now air rights mean something more than just views. Instead of paving paradise and putting a parking lot, the new twist is to rip up the parking lot and put in an apartment block.
real estate mcdonald's property
The McDonald’s Fortune Founded on Real Estate
The McDonald brothers explained that franchisees find land in a prime position, take out a lease, and borrow funds for construction. Who’d have thought the founder’s success in getting started came not from the sale of burgers but from the value in the land on which the burgers were made?
Australian property market
How to Own Almost 200 Properties
It’s not the number of properties that makes you rich; it’s the percentage you own. For example, imagine two investors. One owns 20 properties, the other owns three. Who’s better off? To decide, we need more information.