Q2 2017 Key Market Indicators – New South Wales
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, 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 inflation index
· Unemployment rate
· Weekly family income
· Nett migration
A key finding for New South Wales is in relation to potential future demand for residential real estate, as nett migration has increased by 29.4% over the past 12 months to September 2016, currently at 21,965 people. Dwelling approvals in March 2017 is recorded at 5682, which is only a 4.3% increase over the past three months, and is a 0.1% increase over the past 12 months. This suggests a potential under supply in the market, welcome news for astute investors.
New South Wales recorded the lowest home loan affordability index point of 27.1, below the Australian average of 32.9 index points. That said, surprisingly the number of loans to first home buyers has increased by 7.8% over the past six months, currently at 4276 loans.
Despite unemployment rate increasing to 5.1% in March 2017 this is still below the Australian unemployment rate (5.9%), and the weekly family income has increased to $1,680; suggesting wage growth and strong potential for future economic growth.