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Rental listings decline 13.7% 📉📉🏘️
To understand just how much the rental market is favouring property investors right now, consider this data from PropTrack.
The number of newly advertised properties for rent in March was 13.7% lower than the year before and the lowest March result since 2010.
Furthermore, as the graph shows, all but one part of the country (regional South Australia) experienced a decline in rental listings compared to the year before and all but one part of the country (Canberra) experienced a decline compared to the 10-year average.
“The scarcity of new rental listings reflects the challenge that renters are facing, with a significant shortage of properties becoming available for rent and heightened number of people seeking rentals,” PropTrack said.
Low supply creates high demand, which is why rents continue to rise, month after month, throughout much of the country.
If you're lucky enough to have an investment property, your property will not be vacant for long if you are between tenants.
#property #realestate #investing #realestateaccountants
SA named Australia’s leading state 🍇🍷🥇
South Australia has been named the country’s top state for the second consecutive quarter in CommSec’s quarterly State of the States ranking.
Once again, South Australia placed first in four of the eight economic indicators – economic growth, unemployment, home building starts and construction work.
The other four indicators were topped by Western Australia (population growth and equipment investment), Queensland (home loans) and the ACT (retail spending).
“Overall, economies have slowed in response to higher interest rates, but have generally remained resilient, underpinned by firm population growth and low unemployment,” CommSec chief economist Craig James said.
“Justifying South Australia’s position on top of the rankings is the fact that it ranks first on four of the eight indicators. But there are signs the economy is losing momentum as shown by its sixth ranking on the annual rate of change across the indicators.”
CommSec ranks the states/territories by comparing their current performances on the eight key indicators with their long-term averages.
#property #realestate #investing #realestateaccountants
Vendor discounting falls from 4.2% to 3.6% 📉📃
There's been a sharp reduction in the national rate of vendor discounting over the past year, reflecting a heating up of the market during that time.
Between the quarters of March 2023 and March 2024, the median vendor discount across Australia fell from 4.2% to 3.6%, according to CoreLogic.
As the graph shows, discounting declined in every capital city except Darwin.
Vendor discounting refers to the gap between a home’s initial listing price and its final selling price. A decline in discounting activity means the market is heating up, because more vendors are able to attract a buyer without reducing their price.
#property #realestate #investing #realestateaccountants
Annual inflation falls, but quarterly inflation rises 👆👇😖
The latest inflation data from the Australian Bureau of Statistics, for the March quarter, revealed good news and bad news.
The good news was that year-on-year inflation fell for the fifth consecutive quarter:
* Dec-2022 = 7.8%
* Mar-2023 = 7.0%
* Jun-2023 = 6.0%
* Sep-2023 = 5.4%
* Dec-2023 = 4.1%
* Mar-2024 = 3.6%
The bad news was that quarter-on-quarter inflation rose, from 0.6% in December to 1.0% in March.
If inflation stays higher for longer, the Reserve Bank will be wary of reducing the cash rate, which means it might be a while before home loan rates start falling.
There is even a possibility of a rate rise, terrible as that sounds. Be prepared for all eventualities!
If you need support or planning strategies, please reach out to us.
#economy #realestate #investing #realestateaccountants
Jobs market continues strong run 💪🏃
The national unemployment rate remains in extraordinarily low territory, despite ticking up from 3.7% in February to 3.8% in March, according to the Australian Bureau of Statistics.
The unemployment rate has had a ‘3’ in front of it every month since June 2022, apart from January when it climbed to 4.1%.
When the Reserve Bank of Australia (RBA) started increasing the cash rate in May 2022, some economists assumed that would lead to a sharp rise in unemployment, because the RBA’s interest rate rises were designed to slow the economy (and thereby reduce inflation). Surprisingly, though, unemployment is lower now than it was then (4.0%).
This strong employment market is a mixed blessing. On the one hand, it's great news that so many Australians have jobs. On the other hand, the Reserve Bank might be wary of reducing the cash rate anytime soon, in case it adds too much heat to the economy and puts upward pressure on inflation.
#economy #jobs #money #realestateaccountants
