Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), & 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's 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 & charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, author of the New York Times bestsellers 'End Game' & '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 Hmmm, one of the world's most popular & widely-read financial publications.

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

Wednesday, 3 August 2016

Shift in stance

Y to the sky

Last year I wrote here how the Reserve Bank of Australia (RBA) - probably tired of answering questions about Sydney house prices - subtly amended its Chart Park presentation for housing prices, switching from a linear scale to a log scale. 

In this month's Chart Pack, released today, the RBA has made another presentational shift.

Now capital city prices are not reported at all in the housing prices chart.

Instead, only the national figures are presented as year-on-year annual growth rates. 

Notably this chart now underscores the fact that macroprudential measures have taken some of the fizz out of housing finance and price growth, at the national level at least. 

Housing Prices graph

A not-so-subtle message from the Reserve on its housing market stance.

In yesterday's Monetary Policy Decision Statement, the bank noted that the risk of lower rates exacerbating housing market risks had diminished, before promptly enacting a rate cut to a record low cash rate of 1.50 per cent. 

A good sign. 

The RBA is becoming more agnostic about the level of prices, and focusing instead on getting the economy moving.