Preliminary Clearance Rate Increases to 71.7%, While Auction Volumes Remain Steady

From CoreLogic. This week across the combined capital cities, the preliminary auction clearance rate rose to 71.7 per cent, up from last week when the final clearance rate fell to 67.5 per cent. There were 2,041 capital city auctions this week, virtually unchanged from last week’s 2,040 auctions as well as being higher than the … Continue reading “Preliminary Clearance Rate Increases to 71.7%, While Auction Volumes Remain Steady”

Westpac Q3 Update – Capital Strong, But Mortgage Risks Higher

Westpac released their Q3 Capital update today. The CET1 ratio was 10% at 30 June 2017, and equivalent to 15.3% on a comparable international basis.  This is higher than expected helped by strong dividend reinvestment.  They said they would provide further guidance on their preferred CET1 range (8.75%-9.25%) once APRA finalises its capital adequacy framework … Continue reading “Westpac Q3 Update – Capital Strong, But Mortgage Risks Higher”

Mortgages and debt: How lending culture is leaving Australians vulnerable

From ABC News. A decade of housing price rises, low interest rates and relatively easy credit has left Australians carrying the second highest level of household debt in the world. And despite efforts to tighten lending and to address problems in the lending culture, the ABC’s Four Corners program has learnt bank staff and mortgage … Continue reading “Mortgages and debt: How lending culture is leaving Australians vulnerable”

This is why apartment living is different for the poor

From The Conversation. There’s been a lot of talk about apartment living of late. Whether it’s millennials who can’t afford to buy a house, downsizers making a lifestyle change, owner-occupiers struggling to get defective buildings fixed, or foreign investors buying into new development, there’s no shortage of opinions and interest. Except for one group: lower-income … Continue reading “This is why apartment living is different for the poor”

ISA accuses banks of dodging FOFA

From InvestorDaily. The industry super lobby has accused the major banks of attempting to evade the FOFA regulation within their superannuation products. Industry Super Australia (ISA) recently posted a submission to the Productivity Commission’s inquiry into the efficiency and competitiveness of Australia’s superannuation system. ISA called for a crackdown on big banks and other for-profit … Continue reading “ISA accuses banks of dodging FOFA”

Auction Results 19 Aug 2017

Domain has released the preliminary auction clearance results for today. Melbourne looks like it is leading the way at 78.3% clearance, ahead of Sydney. Still seems to be momentum in the main centres. Brisbane achieved 50% clearance on 100 scheduled auctions, Adelaide 67% on 67 scheduled, and Canberra 74% of 37 scheduled auctions.  

The Debt Monster – The Property Imperative Weekly – 19 Aug 2017

Household Incomes are growing at the slowest rate for two decades, putting more strain on family budgets who are wrestling with rising costs and bigger mortgages and battling the debt monster. What the implications for home prices, and the broader economy? Welcome the Property Imperative weekly to 19th August 2017, as we look at the … Continue reading “The Debt Monster – The Property Imperative Weekly – 19 Aug 2017”

Another Perspective On Debt

We had significant reaction to yesterday’s post on the “normal” status of high household debt. So today we take the argument further using data from the RBA Household Balance Sheet series (E1) and the recent ABS data on income growth. The traditional argument trotted out is that household wealth is greater than ever, this despite … Continue reading “Another Perspective On Debt”

Employment Remains A Mixed Picture

The ABS reported their monthly employment data today, showing that trend full-time employment increased for the 10th straight month in July 2017 but both the trend unemployment rate in Australia was steady at 5.6 per cent in July 2017, and the labour force participation rate remained at 65.0 per cent. Let’s be clear 5.6% hardly … Continue reading “Employment Remains A Mixed Picture”

Is This Amount of Debt “Normal”?

As part of our household survey we had the chance to discuss household debt in our focus group. We had selected participants with large debt burdens, because we wanted to understand better what was driving this behaviour. It was mixed group, with households represented between 20 and 60 years, from multiple locations.  The RBA data … Continue reading “Is This Amount of Debt “Normal”?”