1 - Interest rates and inflation
Wages growth nationally remains sluggish at 2.6 percent, and, with evident slack in the labour market, non-tradables inflation has been declining as recorded in the RBA's chart below.
Although we haven't had an official ABS inflation reading since last month, the monthly TD-MI gauge appears to be easing back towards the bottom of the 2 to 3 percent target band.
Note how futures markets now concur that there is more than a sporting chance of a rate cut in the first six months of 2015, and effectively zero chance of a hike (click charts to expand).
3 - Demand - jobs growth
The strongest economy for the past two years, as discussed here frequently, has been that of New South Wales, while the mining states are now transitioning from construction to production.
The total number of full-time employed in the regions of the main states now sits below 2006 levels, and this casualisation of the workforce may have surprisingly harsh negative impacts for regional housing markets in the decades ahead.
4 - Demand - housing finance
5 - Supply - building
Melbourne and Victoria continue to approve thousand of houses for construction, as has been the case for more than a decade.
6 - Supply - stock and vacancies
Although I used to live in Darwin I haven't been up that way lately, so will just note here that there are just a few worrying indicators in the "Top End", with sliding prices, rising stock on market, signs of quite rapidly rising vacancy rates and a resources boom which is threatening to roll over.
Watch out for sliding unit rents at this stage in the cycle as new supply comes online. Owners of properties with a unique appeal, in outstanding locations or with a key element of scarcity value will of course likely have few problems with rental vacancies in 2015, but lower quality stock in secondary locations could see asking rents getting dropped or have issues securing tenants.