How Big Is The Property Demand Supply Gap?

Although new construction is up this month, DFA believes that demand for new property far outstrips supply because of planning constraints, high development costs and fees; and the inability of many construction companies to get the funding and labour they need at reasonable prices. But, how big is the gap between what we are currently … Continue reading “How Big Is The Property Demand Supply Gap?”

Mortgage Underwriting Disclosure in Australia

Often when we raise comparative issues between mortgage industry practices in Australia and overseas, we find that people leap to the defence of the Australian market, as world’s best practice. So today I wanted to highlight gaps which exist in the Australian market environment, and suggest that there is indeed room for improvement, according to … Continue reading “Mortgage Underwriting Disclosure in Australia”

Measuring Australia’s Progress – Home is a “Fail”

The ABS today released its dashboard style report on Measuring Australia’s progress. Within the various categories there is a section on “Home”. We look at some of the data behind this section, and test their view that there has been no significant change. By way of background, here is the overall scorecard which the ABS … Continue reading “Measuring Australia’s Progress – Home is a “Fail””

RBA Release Statement on Monetary Policy

Today the RBA released their statement on monetary policy, and it included an number of comments which we found significant. Actually, it reminded me of the uncertainty principle. “the uncertainty principle is any of a variety of mathematical inequalities asserting a fundamental limit to the precision with which certain pairs of physical properties of a … Continue reading “RBA Release Statement on Monetary Policy”

The Anatomy of Mortgage Stress

Using data from our household surveys, we track levels of mortgage stress in Australian households. Today we outline our updated findings and projections based on likely scenarios for interest rates and unemployment. Mortgage stress is a poorly defined term. The RBA tends to equate stress with defaults (which remain at low levels on an international … Continue reading “The Anatomy of Mortgage Stress”

DFA International House Price Comparison Index

DFA has published its first International House Price Comparison Index. Whilst many reports include international comparisons of property prices, using data from various sources, when you dig into them, often they do not show what you think they might, because the relative scales, and start points are often out of synch, or the data is … Continue reading “DFA International House Price Comparison Index”