PRD's Key Economic Indicators Q2 2017
Affordability for all, in particular first home buyers, is a key concern for many at present; with preliminary measures to tackle this issue reflected in the Federal Budget 2017.
The Australian Home Loan Affordability Indicator reflects a decrease in affordability for all states except for Queensland, which reported a somewhat stable trend over the past 12 months to December 2016, from 37.6 to 37.3 index points.
"The Australian Home Loan Affordability Indicator reflects a decrease in affordability for all states except for Queensland"
Over the past 15 months the number of loans to first home buyers in Australia has increased to 23,273; from 23,157. That said it is no surprise the number of loans to first home buyers has decreased in NSW, due to current market conditions in Sydney.
The Australian weekly median income was recorded at $1,681 in December 2016, an increase of 2.3% over the past 15 months. Weekly median income has increased in all states except for Western Australia, which has remained stable at $1,983.
That said consumer price inflation has increased by 2.1 index points, suggesting that disposable household income may have decreased; explaining the decrease in consumer sentiment.
Australian Consumer Sentiment
Consumer sentiment is a key indication of the general population’s confidence in the economy, whereby an increasing sentiment suggests consumers are more willing to spend rather than save.
Consumer sentiment has remained under the positive line (100 index points) in May 2017, currently at 99 index points, suggesting there is cautiousness in the market. This is despite the RBA keeping the cash rate stable, which is reflected in the standard variable loan remaining constant at 5.3%.
"The PRD Q2 2017 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, and includes data comprising:
- Number of loans to first home buyers
- Home loan affordability index
- Number of dwelling approvals
- Consumer sentiment index
- Standard variable loan
- Consumer price inflation index
- Unemployment rate
- Weekly family income
- Nett migration
For a closer look at the PRD Q2 2017 Key Economic Indicators please click here