Pete Wargent blogspot
Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), and CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).
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.
Wednesday, 25 February 2015
Wages rise 2.5 percent
Wages growth remains soft
The ABS released its Wage Price Index for the Q4 2014 quarter today which showed wages rising by 0.6 percent over the quarter to be 2.5 percent higher over the year.
Wages growth of 2.5 percent is historically low, but well ahead of the rate of inflation which was only 1.7 percent over the past year (or an average of 2.25 percent on the trimmed mean and weighted median readings).
The headlines will likely reflect slowing wages growth, particularly since public sector wages growth at 2.7 percent was stronger than private sector wages growth of 2.5 percent on a seasonally adjusted basis.
Although wages growth has slowed from the heady mining boom years, Australian wages are still rising both in real and nominal terms.
Wages growth has slowed dramatically in Western Australia as the mining construction boom recedes.
This was particularly so for private sector wages growth of just 2 percent which is the slowest growth on record in WA.
Wages growth in the Australian Capital Territory slowed to just 1.7 percent driven by cuts in Canberra while Northern Territory wages growth now appears to have stabilised over the last 6 quarters at a more sedate 2.8 percent per annum.
Generally the trend is towards slower wages growth.
The 1, 5 and 10 year wages growth figures show just how much wages in Western Australia benefited from the mining boom.
Overall a soft set of numbers, but an unsurprising release, the impact of which was outweighed today by a better-than-expected Construction Work Done set of figures, which I'll step through later.
In other news, Domain Group's Dr. Andrew Wilson has constructed a new housing market analysis tool - the "Countdown to Sydney $1,000,000 median house price".
Wilso's tool projects that Sydney's median house price will surpass seven figures in 474 days, 11 hours and 7 Minutes time (approximately).