Q1 2018 Key Market Indicators

Key Findings

• New South Wales wins the gold award for the most improved number of first home buyer loans for the period of September quarter 2016 - September quarter 2017, reporting an extraordinary growth of 70.9%. 
  
• The Australian Capital Territory (ACT) wins the gold award for most improved home affordability loan index growth in September quarter 2017, increasing by 8.6% over the past 12 months.
  
• The Northern Territory leads the way in employment growth, with unemployment rate decreasing by 18.8%. 
  
• South Australia continues to prove itself as a contender in the realm of income growth, with the Q1 2018 PRD Key Market Indicators being the 3rd in a row (of its series) where South Australia has reported the highest median weekly family income growth. 
  
• Western Australia has proven to be a desirable place for affordability options, with a 6.4% improvement in their home affordability loan index over the past 12 months to September quarter 2017.

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And the most improved number of the first home buyer loans gold award goes to…..New South Wales! 

First home buyers have been the topic of many debates over the past couple of years, particularly their ability to crack into the property market. Unexpectedly, New South Wales can now claim the most improved number of first home buyer loans gold award, with the number of first home buyer loans increasing by 70.9% between September quarter 2016 (3,965 loans) to September Quarter 2017 (6,775 loans). The most improved number of the first home buyer loans silver award goes to the Australian Capital Territory (64.4%), and the bronze award goes to the Northern Territory (37.9%).

Australia’s home loan affordability index rose by 1.9%, and with all states reporting positive growth, there is a positive outlook for affordability. 

Those looking for more affordable options should consider buying a property in the Australian Capital Territory, as their home loan affordability index reading has grown the most at 8.6% over the past 12 months to September quarter 2017. They also have the highest home loan affordability index at 54.2 points in September 2017, well above the Australian average of 33 index points. This is followed by Western Australia (6.4%) and the Northern Territory (5.7%). Interestingly, New South Wales and Queensland home loan affordability index grew at almost an on par level, at 3.0% and 3.6% respectively. Overall, Australia’s home loan affordability index rose by 1.9%, and with all states reporting positive growth, there is a positive outlook for affordability.

The Northern Territory leads the way in employment growth, with unemployment rate decreasing by 18.8%. 

Australia’s unemployment rate is promising, as it decreased by 3.5% to 5.5 points in January 2018, suggesting that more people are earning disposable income. The Northern Territory leads the way in employment growth, with unemployment rate decreasing by 18.8%. This is followed by Western Australia (-10.9%) and Tasmania (-9.0%). 

Based on the three key indicators above (number of first home buyer loans, home loan affordability index, and median family income) it is not surprising that consumer sentiment has increased over the past 12 months, by 3.1% to 102.7 points. This puts us in the positive sentiment category, meaning consumers have a positive outlook towards the national economy and will be more willing to spend, triggering a positive multiplier effect across all industries. 

What are PRD’s Key Economic Indicators?

The PRD Q1 2018 Key Economic Indicators provide consumers with a quick snapshot of the current state of affairs from an economic and property perspective. 

The PRD Key Economic Indicators cover both national and state-level data, comprising of:

• Number of loans to first home buyers
  
• Home loan affordability index
  
• Number of dwelling approvals
  
• Consumer sentiment index
  
• Standard variable loan
  
• Consumer price index
  
• Unemployment rate
  
• Weekly family income
  
• Nett migration

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