As we approach the festive season, a time known for merriment and relaxation, the Australian housing market shows signs of its holiday demeanour. In this blog, we’ll delve into the insights shared by Pete Wargent from AllenWargent Property Buyers, highlighting the seasonal shifts, dwelling shortages, and economic movements shaping the real estate landscape down under.
Watch Pete Wargent’s complete discussion for a detailed analysis. Check out the full breakdown here.
1. Seasonal Slowdown in Major Cities: A Tale of Declining Auction Rates
Much like its global counterparts, the Australian housing market is not immune to seasonal changes. Pete Wargent points out the typical decline in auction clearance rates observed in major cities like Melbourne and Sydney. This slowdown, a customary trend during the holidays, reflects reduced activity in the property market.
However, it’s not all a story of decline. Cities such as Perth, Adelaide, and Brisbane dance to a different tune, showing continued promise despite the overall market trend. The increase in property supply, attributed to the festive period, may set the stage for a market rebound around February.
2. The Complex Puzzle of Dwelling Shortages
The issue of housing shortages in Australia is no secret. Oxford Economics has recently highlighted a significant shortage in supply. Pete’s analysis sheds light on this pressing issue, estimating the commencement of 150,000 dwellings this financial year. Yet, this figure pales compared to the daily population growth of approximately 2,000 people, painting a challenging picture for meeting housing demands.
Labour and trade shortages further exacerbate this problem. Finding skilled builders has become increasingly complex, turning the construction of new homes into a challenging puzzle that needs solving.
3. Inflation and Economic Recovery: A Comparative Perspective
Inflation, a global economic influencer, shows signs of retreat in Australia, with the Melbourne Institute’s November inflation gauge indicating a decrease to 4.4% over the year. As Pete suggests, this decline is a step in the right direction, with potential further reduction expected due to the anticipated decrease in petrol prices.
Yet, when placed on the global stage, Australia’s recovery pace appears slower than that of other nations. This lag, while notable, does not diminish Pete’s optimism for further improvements in the coming year.
Conclusion: A Hopeful Outlook Amidst Challenges
As we wrap up this insightful journey with Pete Wargent, it’s clear that the Australian housing market is navigating through a complex web of seasonal trends, supply challenges, and economic shifts. The upcoming year holds promise, with potential improvements in construction and economic recovery on the horizon. Stay tuned to Pete’s detailed video discussion for an in-depth analysis of these trends, and let’s keep an eye on how the Australian housing market unfolds in this ever-changing landscape.