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
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
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!
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.