Weekly Property News 21st Edition 2021
“The Wealth Effect”
Hi Guys, it’s Dean OBrien from OBrien Real Estate with the 21st edition of the Property News for 2021 where real estate information is on the house.
When Australians feel wealthy, they spend money and this primarily has been the driver to our economic recovery from Covid-19. You might think that property prices have made the average Aussie a whole lot wealthier, but it’s a combination of a boom in shares, superannuation, cars, caravans that have contributed equally as strongly. Another factor that is contributing is personal savings in Australia has never stronger either.
Here are some quick grabs of some graphs to help illustrate the Wealth Effect. Here is the worm depicting the household wealth over the last 30 years up to the end of December in 2020 and you can imagine what it looks like now some 6 months later.
The Household Saving Rate in Australia has never been stronger. While many there was many lockdowns and government subsidies in 2020 you can imagine that savings were strong but in 2021 the trends are is still double what is has been in recent years.
In this next graph, you’ll see that people’s incomes are increasing and consumer spending is decreasing. The gap is widening in a positive way.
Shares last Friday on the Aussie Exchanges hit record highs. The ASX 200 index stands almost 24 percent higher than a year ago. For property prices in Metro Melbourne we standing at a 5 percent gain over the 12 month period and 13% for Regional Victoria. The best performers in property are Hobart at 16.5 percent growth and Darwin at 20.3%.
Aussie car owners would expect their cars to depreciate, but over the past year, used car prices have increased by 47.4 percent on a year-ago basis to the end of May according to the Datium Insights-Moody’s Analytics Index. Luxury new cars are also up to record highs.
Lastly, the Bureau of Statistics (ABS) reported that there was a record 6,140 demolitions of dwellings in the March quarter, up from 4,721 a year ago and up from 4,832 in March quarter 2019.
The Numbers – Wrapping up this week’s property news with the numbers over the last week. The Victorian auction clearance rate over the long weekend hit a healthy 91% clearance rate, from the 179 reported auctions with 1156 private sale treaties taking place.
Lastly, on behalf of OBrien Real Estate, I would like to congratulate Anna Molinaro from our Blackburn office for being a finalist in Real Estate Institute of Australia’s 2021 awards for best Property Manager and Michelle Stephens from our Carrum Downs office for winning the category of best Sales Agent.
That’s all for this week, I’m Dean OBrien and remember the information provided is of a general nature you should always seek independent legal, financial, taxation or other advice in relation to your unique circumstances.