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'.

Monday, 3 July 2017

Scorched earth

Home prices rise in June

Property prices zoomed +2.7 per cent higher in Melbourne in June, and +2.2 per cent higher in Sydney, according to CoreLogic. 

With serviceability constraints starting to bite in Sydney the monthly gains were largely driven by apartments, with units in the harbour (+4.5 per cent) recording a large jump. 

In reality this index produces a decline in May and then a rebound in June every year, so the quarterly results may be a better place to direct your attention.

Over the three months to June there were median price gains in Sydney (+0.8 per cent) and Melbourne (+1.5 per cent), while Brisbane notched the third strongest quarterly result (+0.5 per cent). 

The Sydney market has clearly pared back after blistering +5 per cent growth in the March quarter, echoing recent trends in auction clearance rates. 

A strongly monthly result saw the quarterly result move into the black there too. 

Source: CoreLogic

The Rest of State figures were flat over the three months to June, after a posting a negative result for the month.  

This now leaves Darwin as by far the worst performing capital city in line with a wide range of other indicators, with home prices some -7 per cent lower over the year to May at $480,000.

Rents on the way up

CoreLogic also found that stronger rental price growth has returned since the end of 2016.

Year-on-year extremely strong rental price growth has been recorded in Canberra (+8.4 per cent) and Hobart (+6.2 per cent), with Canberra experiencing considerably tighter vacancy rates following the controversial introduction of steeper taxes. 

And mirroring the findings of SQM Research and Domain, both Sydney (+4.5 per cent) and Melbourne (+4.1 per cent) are suddenly recording much faster rental price inflation as strong migration absorbs the available supply of rental stock. 

With energy costs also set to rise sharply, this dynamic may have important implications for monetary policy and interest rates, since it might begin to push inflation in towards the target control range. 

Find much more detailed analysis from CoreLogic in their media release.