Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), and CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

5 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he is one of the finest property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data and charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, and author of the New York Times bestsellers 'End Game' and 'Code Red'.

"The level of detail in Pete's work is superlative across all of Australia's housing markets" - Grant Williams, co-founder RealVision - where world class experts share their thoughts on economics & finance - & author of Things That Make You Go of the world's most popular & widely-read financial publications.

"Wargent is a bald-faced realty foghorn" - David Llewellyn-Smith, MacroBusiness.

Wednesday, 29 January 2014

UK houses prices +0.7% m/m (+8.8%) y/y

Nationwide reported UK house prices as being up by 0.7% in January, so 2014 is picking up where 2013 left off.

Over the last 12 months, UK house prices were reported as being up by 8.8%, as a result of low interest rates, rising employment and steadily increasing confidence returning to the UK economy.

The average price of a home increased to £176,491 as housing market activity picked up sharply towards the back end of 2013. 

Meanwhile, in Q3 2013 the number of first-time buyers increased by 32% on the corresponding prior year figure. 

With a sharp increase in mortgage activity, more than 1 million homes were sold in the year.

Only 12,875 of these properties were bought under the Help to Buy equity loan scheme in the the first 9 months of its operation.

The scheme is aimed at potential buyers with a steady income but who have been unable to raise a deposit. 

Under the scheme, which started in April, the British government offered a 20% equity loan to buyers of new properties. The buyers were required to offer a 5% deposit.

Interestingly, more than half of new mortgages (52%) were for a duration of more than 25 years, up from just 40% in 2007, as buyers seek new ways to reduce costs. Very few interest only loans were issued to first homebuyers (2%). 

Borrowers should expect interest rates to rise some time in the near future as the economy at last begins to grow and unemployment looks set to fall below 7%.