Q2 2017 Key Market Indicators – Victoria
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 Victoria is in relation to potential future demand for residential real estate, as nett migration has increased by 20.5% over 12 months to September 2016, currently at 24,020 people. Dwelling approvals in March 2017 are recorded at 5777, which is only a 1.5% increase over the past 12 months. This suggests a potential undersupply in the market, welcome news for astute investors.
Despite home loan affordability decreasing (to 31.4 index points), this is only very slightly below the Australian average (32.9 index points), and is reflected in the 7.1% increase in number of loans to first home buyers – currently at 7079 loans. The Victorian unemployment rate increased to 6.1%, however the weekly family income has increased to $1,629. This suggests wage growth and strong potential for future economic growth, which is good news for both owner occupiers and investors.