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, 23 December 2015

Merry Xmas 2015

Xmas time

An early Merry Xmas from the Old Dart, where preparations for the usual festivities are well underway.

While on the subject of British news, Hometrack released its final 20 Cities Index for the year.

It's been an interesting year for the UK. The FTSE hasn't done a great deal of note, weighed down by the oil and resources stocks, but employment and the employment rate are at record highs, and unemployment keeps falling

2015 was another year where commentators predicted a property market correction for London, but on the back of a 4.1 per cent surge in the last quarter, London prices are up by 13.3 per cent year-on-year to once again top the table.

This represents another increase o£52,900, and follows very strong gains of 14.7 per cent in 2014.

London prices are now 45 per cent above their 2007 peak and up 74 per cent from their trough. 

The capital city therefore just nudges out Cambridge as the top performer, where prices are up by 72 per cent from their trough to be 44 per cent above their 2007 peak.

On the other hand, most regional cities have done next to nothing since 2007 despite periods of high inflation, and several remain below their respective 2007 peaks, most notably Belfast in Northern Ireland.

Interestingly the oil price shock has seen slick house price growth in Aberdeen quickly turned to sludge, with prices now down over the year. 

Overall city house price growth came in at 10.1 per cent growth in 2015, despite lower sales volumes.

Debt servicing costs continue to fall leaving affordability broadly unchanged, with the average rate payable on outstanding mortgage debt now just 3.1 per cent. 

City prices are forecasts to rise by 7 per cent in 2016 in spite of a likely slowdown in investor activity, with the ongoing dearth of available stock expected to be a key driver.

Read Hometrack's insights here