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How does the current growth cycle compare to the 2001 to 2004 boom?

In this week’s blog we take a look at how current housing market conditions compare with the boom in home values between 2001 and early 2004.  Immediately a point to note is that the current housing market upswing came off the back of dwelling values falling over the previous two years. If we assume that […]

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Why would deflation of our largest asset class be a good thing?

Balancing an economy is undoubtedly a tough ask for anyone. Our inflation targeting Reserve Bank looks to maintain inflation within a range of 2% to 3% on an annual basis over the cycle.  Too much inflation is not ideal, nor is deflation, so the RBA tries to tweak monetary policy to stimulate the economy in […]

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Inflation adjusted home values have only risen over recent years in Sydney, Melbourne, Darwin and Canberra

Earlier this month the Australian Bureau of Statistics (ABS) released its quarterly Consumer Price Index (CPI) or inflation figures.   The data showed that over the September 2014 quarter, inflation was recorded at 0.5% and over the 12 months to September 2014 it was recorded at 2.3%.  The Reserve Bank has a target range for annual […]

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September 2014 Reserve Bank Financial Stability Review

The Reserve Bank released their bi-annual Financial Stability Review (FSR) earlier today.  From a housing market perspective it makes for very interesting reading with the RBA noting that ‘the composition of housing and mortgage markets is becoming unbalanced, with new lending to investors being out of proportion to rental housing’s share of the housing stock.’ […]

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Inflation adjusted home values are still lower than their previous peak across most cities

According to the RP Data-Rismark Home Value Index, combined capital city home values fell by -0.2% over the second quarter of 2014.  With the Australian Bureau of Statistics (ABS) releasing their Consumer Price Index (CPI) data this week, we can see that in ‘real’ terms home values across the combined capitals fell by -0.7% over […]

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What can be done about the fading hopes of lower income earner’s owning a home?

Lower income earner’s hopes of owning a home have faded over the past two years due to the high rate of capital gain, so what can be done? In last week’s RP Data Research Blog I highlighted sales by price point across the capital cities.  The data showed a shortening supply of homes selling at […]

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Fewer homes selling at lower price points as value growth surges

There’s no doubt about it, housing is becoming more expensive as home values rise.  The escalation in the cost of housing is forcing households to spend more to purchase a home; subsequently the deposit is also higher forcing many first home buyers to wait until later in life to purchase a home or consider a […]

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Forget affordability measures and ask yourself some tough questions

There are many measures of affordability in the marketplace, sadly I believe that many of these measures fail to accurately depict the affordability or otherwise of housing in Australia.  The main reason being that housing affordability is an extremely complex issue and many factors drive the affordability of housing.  In this blog post I am […]

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Has the housing market moved through the peak of the growth cycle?

The RP-Data Rismark Home Value Index reported its first month on month fall in May after capital city dwelling values consistently rose over the previous eleven months. The extent to which the May decline was a seasonal factor has been a key topic across the media; generally the month of May is a seasonally weak […]

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A case study of Sydney housing over time

Over the three months to April 1990, the median selling price of a dwelling (a combination of houses and units) across Sydney was recorded at $152,500.  As at April 2014, the median selling price of a dwelling was $680,000 which represents a 347% increase in selling price over the 24 year period.  Of course a […]

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