Australian Employment and House Prices

[PropRate]

The recent Labour force release from the Australian Bureau Statistics reported that the
Unemployment rate decreased from 5.0% to 4.9%. What does this mean for house price inflation? see more on http://wp.me/pTU04-7v

Are affordability issues out weighing low unemployment levels

[mattinvestor]

As a recent update of the employment rate in OZ, Australia's unemployment rate is now at 5.2 per cent from October 2011. Therefore, it rose since early 2011

[freeloader]

As a recent update of the employment rate in OZ, Australia's unemployment rate is now at 5.2 per cent from October 2011. Therefore, it rose since early 2011

I went to a property research session and the said the unemployment is not the only determining factor on house affordability. It's the number of people employed.

[Moses Opondo]

Employment/Unemployment affects housing market, but i think the impact of a drop of 0.1% is negligible.

[jenni_nextplace]

Employment and wages, the average wage can't afford to buy the average house.

[Tan]

Australia is so huge that the left side is totally different from the right side and the top wouldn't recognise the bottom. I can't see how cumulative stats apply here.

[freeloader]

You're right tan. Australia is so big each state has it's own cycle. Compiling it together is almost meaningless. To be fair we need to look at whose has recently lost their jobs to see what the market might look like. Sydney n Mel are losing bankers so likely top end property price will lose out. Here hoping

[elisten]

My indian friend was in Australia for degree and he couldnt get a job over here. Sadly he had to return back to India.
unemployment is going too far now

[almoyen]

The decrease of employment rate may increase the prices of properties in some areas. However, the data won't reflect the property market soon, it will take time and even if the price rises, it might be a little fraction that most small investors won't even notice!

[Tan]

Prices are dropping like a stone here. A house that rented for over $2000 per week is now renting for around $1400 and it's dropping weekly. Unfortunately the cheapest rent is still $450-500 so my rent remains the same.

Houses have generally sold at around 10% yield so you can imagine how sales have been affected, not that much is selling lately.

The Government will be happy as that is what it wanted, but not for the reasons it has.

[Lans_Jefferson]

What do you think is this going to be like this for some more months or sooner the trend will go the other way ?

[bruynjustin]

The slowdown in house price growth began prior to the slowdown in employment growth.

[mauricecowell]

Australia is so huge that the left side is totally different from the right side and the top wouldn't recognise the bottom. I can't see how cumulative stats apply here.

[StacyMendez]

Two other markets at risk are Australia and New Zealand. Both have benefited from higher commodity prices and have seen increases in construction-related employment. Their central banks have responded by tightening monetary policy; the last time rates were cut in either country was more than four years ago.
Since 1997 house prices have risen faster in Australia than New Zealand, but Goldman reckons that the latter is more vulnerable. Real house prices are 82% higher than they were in the last quarter of 1999, and have risen by 70% relative to household income, the biggest increase in all the countries Goldman has surveyed.
If house-price weakness does spread more widely, there may be important economic consequences. There is plenty of debate about the size of the “wealth effect?? of higher property prices on consumer demand. But it will hardly help that fuel and food prices are soaring at the very moment when the value of bricks and mortar looks about to sag.

[donna]

Where are you getting your information from Stacy - as it's grossly incorrect. Just do a search on rate cut NZ and you'll see what you've presented is out of date.

cheers,

Donna