Housagon

Is an Over Supply of New Homes on the Horizon? Is an Over Supply of New Homes on the Horizon? Seeing a lot of new home builder ads lately? You're not alone. Many people are experiencing a surge in these ads on social media, leading to concerns about a potential oversupply of housing. Let's delve into the data and separate fact from fiction. Analyzing the Numbers: Population Growth vs. Rental Supply Looking at nearly 15 years of data (courtesy of Propertyology, SQM, and ABS), a clear picture emerges. Population growth has seen a substantial increase, with the nation adding approximately 6 million people. This represents a significant demand driver for housing. However, the crucial factor is the trend in rental supply. After a period of oversupply around 2010-2011, which led to higher vacancy rates (around 4%), the trend has shifted dramatically. Rental supply has seen a concerning decline. ...

Decoding the RBA Rate Cut: A Game Changer for Australian Property? After a relentless cycle of 13 rate hikes over the past four years, Australia has finally seen a shift. The Reserve Bank of Australia (RBA) has announced a 0.25% cut to the cash rate, igniting a wave of speculation and anticipation. Is this the dawn of a new era, or a potentially risky move that could reignite inflationary pressures? Let's dissect what this rate cut means for property buyers, owners, and the overall market outlook. A Pivotal Moment or a Fleeting Pause? While a rate cut was widely predicted by market indicators, some economists remained cautious. The RBA's decision reflects the delicate balancing act between stimulating economic growth and controlling inflation. The key questions now are: Will this be the first of several cuts, signaling a softening economy? Or could it be a premature move that backfires if inflation proves stickier than anticipated? Savvy investors need to be prepared fo...