Pete Wargent blogspot

Co-founder & CEO of AllenWargent property advisory & buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place) - clients include hedge funds, resi funds, & private investors.

4 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 better property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete Wargent 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'.

"Pete's daily analysis is unputdownable" - Dr. Chris Caton, Chief Economist, BT Financial.

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Friday, 10 June 2016

Listings fall across the board

Listings decline

SQM Research reported a sharp 4.3 per cent national fall in property listings in May.

Listings totals were down from those recorded in April across the board in the capital cities. 

Year-on-year the tightening markets have been Melbourne and Hobart, while Darwin and in particular Perth now appear to have stabilised on this metric.

Which is to say, there are slightly fewer properties for sale in Perth than was the case one year ago.

Having normalised over the past year from a frenzied market Sydney listings recorded a substantial 6.2 per cent decline in May - which may prove to be a significant move - and there were also material declines in Canberra, Hobart, and Adelaide. 

Melbourne continues to play host to by far the greatest number of listings nationally despite notching a solid year-on-year decline.

Over the past year, listings have fallen from 39,912 to 37,350 in Melbourne, for a decline of 6.4 per cent. 

Over the same time period listings in Hobart have declined from 4,091 to just 3,608, a material tightening of 11.8 per cent.

Overall, the figures suggest that by the end of May stock was being reasonably well absorbed in most capital city locations. 

The official cash rate was cut to a record low on May 4. 

Mortgage war

There are now a raft of mortgage lending products available from interest rates of well under 4 per cent, and with the cash rate and bond yields having touched record lows it seems entirely feasible that some lenders will be prepared to head towards 3.5 per cent in due course.

Bank funding costs fell in 2015 - as I looked at in more detail here - and they have dropped again lately.

The Commonwealth Bank of Australia (CBA) is preparing to slash rates on a range of its products from Monday by up to 40 basis points.

Being prepared to beat most quotes on the market, CBA would be ripping up market share at the moment if only its processing times could keep up (processing has often been dreadfully slow). 

For those able to prove serviceability and with access to an adequate deposit, lending rates are set to become increasingly attractive, and soon.