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'.

Tuesday, 24 January 2017

Soggy with damp patches

2016 slowdown

First, the good news! Total employment increased to 12,093,400 in seasonally strong December, the highest number of employed persons in Australia's history. 

After a blistering year for jobs growth in 2015 when more than 300,000 jobs were added, the last calendar year was considerably slower, with employment growth sagging to +89,2000 or +0.74 per cent. 

Greater Melbourne, in essence, added the new jobs on a net basis last year. 

The main change during the year was that annual employment growth in Greater Sydney slowed all the way back to 1 per cent, from a massive 4.2 per cent at the 2015 peak.

And in Greater Brisbane, employment growth stalled.

It's not all bad news, though. 

A whole range of metrics confirmed that the economy went into a very soggy patch in the third quarter of the year, reflected in a negative GDP print, but there does appear to have been a bit more momentum picking up towards the end of the calendar year.

Around the major capital cities, only Greater Sydney is in fine nick from an unemployment rate perspective - sporting an unemployment rate of under 5 per cent - followed by Brisbane and then Melbourne.  

In Greater Perth, the trend is still upwards. 

Around the traps...

The ABS figures don't cover all sub-regions in detail, but it's clear that the resources-influenced regions have endured a tougher stretch since the peak of the resources construction boom in 2012.

That said, it does seem that in many areas employment may now be forming a base.

You may snort with derision - as indeed you are entitled to! - but Louis Christopher of SQM Research believes that some of the hardest hit mining regions such as Karratha in Western Australia may now be passing a housing market nadir. 

It's usually well worth taking careful note of his market analysis.