“Don’t Fear A Crash”: Dr Andrew Wilson
A rapid fire tete-a-tete with the leading Australian economist and founder of My Housing Market.
A rapid fire tete-a-tete with the leading Australian economist and founder of My Housing Market.
Kanebridge News: Let’s cut straight to it – your response to the almost daily diatribe being espoused by the naysayers in regards to the national housing market, specifically Sydney, and predictions about its alleged imminent failure?
Dr Andrew Wilson: Such attention-seeking crash predictions have consistently proved to be wrong in the past, and will again prove just as wrong this time. The prospect for the preconditions for falling house prices – sharp increases in interest rates – has never been more remote.
KN: How do you view market movement in the major capitals the next 12 months?
AW: Strong growth in all capitals – Melbourne, Sydney and Perth top performers all likely higher by 10%. Price’s growth will likely decline over the year as affordability falls through higher prices with flat interest rates and low incomes growth.
KN: And the residential rental market?
AW: Lower vacancy rates and higher rents for houses compared to units generally across the board.
KN: Perennial question then – advice for those trying to get into the property market this year?
AW: Maximise your buying potential. Be prepared to compromise. Be prepared to be disappointed. Consider buying first and then selling. As always, consult a financial advisor.
KN: How important is data use in property and how can a novice best apply such sets in regards to a purchase?
AW: Reliable, real-time data provides the foundation for property decision making – enhanced by objective, rational commentary that joins the dots.
KN: What do you see as the most important data consideration(s) when assessing movement in a specific market?
AW: Local supply and demand factors, matched with the overarching macroeconomic drivers and real-time market activity measures of prices and volumes.
KN: Clearance rates across the country, specifically Sydney, have recently hit record highs — how do you analyse such numbers, given this is unprecedented?
AW: The Sydney market is responding to high levels of affordability with prices – despite recent strong growth – still at the levels of four years ago. Over that period mortgage rates have fallen by over 1% and incomes have increased by over 6%, giving buyers the capacity to pay more for property. With credit restrictions and coronavirus impediments now eased – the market has clear air to catch up.
KN: Your take on why we’re a property engaged culture?
AW: High aspiration for home ownership and investment underpinned by a strong financial sector and enhanced taxation benefits.
KN: To those that might not know you – you formerly worked as a chief economist for the Domain group, Australian Property Monitors before launching My Housing Market.
AW: Well, my background is in the science and philosophy of housing market economics — I was an academic researcher and lecturer at RMIT University before I worked my way to chief economist at Domain Group and, now, running my own offering and analytics through My Housing Market.
KN: What was the impetus to launch My Housing Market – and how does the platform differentiate itself from what else is out there?
AW: My Housing Market combines high-level, comprehensive, real-time data insights into property markets with detailed, credible and reliable expert commentary. The ‘what’ and the ‘why’.
KN: What is it about property that you’re drawn to?
AW: I have to live somewhere.
KN: Well played …
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Scheduled auctions fall to winter levels as vendors hold back on going to market
Grand final fever and the long weekend have dampened scheduled auction activity this weekend, CoreLogic reports.
The number of homes scheduled for auction this weekend is set to halve, with 1,324 properties listed, marking the quietest week since mid June. Melbourne will experience the quietest week since Easter, CoreLogic data shows, with 223 homes prepared to go under the hammer. In Sydney, 805 properties are expected to go to market, the lowest number in seven weeks.
With long weekends in Queensland and South Australia, numbers are also down in Brisbane (111) and Adelaide (86), less than half the properties available for auction the previous week. It’s a less dramatic drop in Canberra, where 83 homes are scheduled for auction, down -22.4 percent on the previous week.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual