An In-Depth Look at the Current Housing Market Trends

Greetings to all our readers! Today we are diving deep into the current housing market trends, focusing mainly on the
auction results, the latest home loan data, house building costs, and the impact of interest rate changes.

1. A Discussion with Dr. Andrew Wilson
Recently, I had the privilege to engage in a fascinating conversation with the renowned Dr. Andrew Wilson. As a
seasoned economist, Dr. Wilson shared his expert insights on the housing market trends and predictions for the future.

1.1. Lighting Up the Studio
Dr. Wilson had just completed a studio session in Sydney. He was all praises for the studio lighting which made him
appear more vibrant and tan than usual.

1.2. Mid-November Highlights
Our discussion moved on to the mid-November highlights. We are halfway through the month, and the holiday season is
slowly creeping in. Our conversation revolved around the latest auction results and the impact of the recent rate rise.

2. The Rate Rise Discussion
The first rate rise since June has caused quite a stir in the market. There are speculations about another potential rise
in December, which isn’t exactly welcome news for mortgage holders.

2.1. Webinar Insights
During a recent webinar, we witnessed a high turnout of close to 2000 participants. It’s clear that people are more keen
than ever to gain knowledge and insights about the market, especially given the fear and uncertainty surrounding rate
movements.

3. The Big Four’s Profits
In a surprising turn of events, the Big Four banks reported a whopping profit of $32.5 billion. This, despite their track
record of dreary housing market forecasts.

3.1. The Oligopoly Effect
Our banking system, characterized by an oligopoly, ensures security but at the same time, leads to massive profit- making. The increase in bank margins over the last decade was another point of discussion.

4. The U.S. Inflation Data
The U.S. inflation numbers were another topic that sparked our interest. The underlying inflation rate in the U.S. stands
at 4%, while in Australia it’s at 5%. Despite our lower interest rate, our mortgage rate is actually higher.

4.1. The Role of the Umpire
Dr. Wilson emphasized the need for an umpire to protect the interests of consumers. The umpire’s role would be to
ensure that mortgage rates don’t rise higher than the official rates.

5. The Profits and Losses
In the battle of profits, Commonwealth Bank emerged victorious with a massive $10.2 billion, while Westpac trailed
behind with $7.2 billion. Despite a downturn in the housing market last year, these banks managed to pull off a
significant profit.

5.1. The Impact on First Home Buyers
However, the flip side of this profit-making venture is its impact on first home buyers. With rising costs and higher
interest rates, first home buyers are finding it increasingly difficult to enter the market.

6. The Building Costs Scenario
The ABS recently released its home loan series which shows that home loans had increased by 0.9% over the month.
However, first home buyer activity is down by 2.4%.

6.1. Investor Activity
Interestingly, investors seem to be performing well in this scenario. In terms of home lending, investors were the top
performers, up by 2% over the month.

6.2. State-by-State Home Loans
Looking at home loans across states, Queensland topped the list with a 2.5% increase. Investor activity was the highest
in New South Wales, while Victoria led the way for first home buyer lending.

7. The Refinancing Scenario
The trend of refinancing seems to be declining as people adjust to the new market conditions. However, the fall in the
refinancing market share indicates that the market is stabilizing.

7.1. House Building Costs
In terms of house building costs, recent data shows a slight decrease. Despite this, the cost remains significantly higher
than the previous year.

7.2. State-Wise Building Costs
Among the Australian states, Sydney reported the highest average quarterly building cost. However, the rate of
increase seems to be slowing down, indicating some relief for builders and consumers.

8. Auction Market Analysis
Moving on to the auction market, November witnessed a steady weekend. Despite the recent rate rise, clearance rates
remained relatively stable, indicating a healthy market.

8.1. Auction Results by State
Sydney reported over 800 auctions with a clearance rate of 70%. Melbourne saw nearly 1000 auctions with a similar
clearance rate. Brisbane held its own with a stable clearance rate, despite a marginal increase in numbers.

8.2. Auction Trends
Overall, the auction market performed as expected with lower clearance rates towards the end of the year. This
seasonal effect is common and is usually influenced by high stock numbers.

9. The My Housing Market Infinity App
For those interested in getting real-time updates on the housing market, the My Housing Market Infinity App is a great
tool. It provides the current asking price and rent for every suburb in Australia.

9.1. App Features
The app allows you to filter data according to property type and the number of bedrooms. It also provides the median
asking price, the high and low price, and the number of properties for sale or rent in a particular suburb.

10. Looking Forward
As we move forward, some key data to look out for includes the Wage Index and the labor market data. These numbers
will give us a better understanding of the market trends and their impact on wages and employment.

10.1. The Wage Index
The Wage Index data will reveal if our income is sufficient to cover our outgoings. With a booming labour market, we
are expecting a bounce back in annual wages growth.

10.2. The Labor Market
The labor market data will provide insights into the current employment scenario. It will be interesting to see how the
market responds to the rising wage trends.
In conclusion, the housing market is a complex ecosystem influenced by a variety of factors. From interest rates and
bank profits to auction results and building costs, every element plays a significant role in shaping market trends. As we
navigate through these changing dynamics, it’s crucial to stay informed and make informed decisions. Stay tuned for
more updates and deep dives into the world of real estate!