Q4 2017 PRD Key Market Indicators - Tasmania
Believe it or not…Tasmania (TAS) has had the highest decrease in the number of first home buyer loans growth, by 17.6% over the past 12 months (to June 2017). Attributed to high interstate investor activities and an undersupplied market, TAS first home buyers are officially being priced out of the market.
The PRDnationwide Q4 2017 Key Economic Indicators provide consumers with a quick snapshot of the current state of affairs from an economic and property perspective. The PRDnationwide Key Economic Indicators cover both national and state level data, comprising of:
- Number of first home buyer loans
- 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
TAS’s affordability has decreased by 0.5% over the past 12 months (to June 2017), to 41.9 index points. This is a significant contrast to the March 2017 figures, which saw an increase in home loan affordability by 2.9% to 42.3 index points. In terms of affordability, this brings TAS in the same league as New South Wales and Victoria, which also had a decrease (of 1.5% and 2.0% respectively) in home loan affordability growth over the past 12 months (to June 2017).
That said TAS’s home loan affordability index point is sitting at 41.9, which is still higher than the Australian average of 31.8 index points. TAS may take slight comfort in this, as the 46.0% increase in dwelling approvals over the past 12 months (to September 2017) should relieve increasing market demand – especially from interstate investors. However, nett migration in TAS increased by 37.7% to 781 in March 2017, therefore the supply of property demand needs to be monitored closely to ensure first home buyers have equal opportunity in the market.
Good news can be found in the amount of people employed in TAS, with the unemployment rate decreasing by 4.7% over the past 12 months (to October 2017). Furthermore, those who are currently employed are enjoying an increase in household income, with weekly family income increasing by 2.4% to $1,394. This suggests wage growth and strong potential for future economic growth.
For a closer look at the PRDnationwide Q4 2017 Key Economic Indicators visit PRD.com.au/research-hub