Welcome to this month’s edition of the Dot Monthly..
As the weather continues to heat up (not this week of course!), so does the property market during this Spring Season. It feels like the property market is bucking the trend as we have entered our first recession in almost 30 years. The strong demand, coupled with low supply, record low interest rates and the uncertainty in the global environment is leading to more Aussies looking at property as a safe haven than cash or equities.
I hope you and your family are keeping safe in the midst of the COVID-19 pandemic.
Off to other news…
Confidence In Housing Market Booms: Westpac
Confidence in the Australian housing market is rising, with a Westpac consumer survey revealing a strong uplift in consumer sentiment.
The national “house price expectations” index grew by 32% to 117, with all states registering a double digit increase.
The national “time to buy a dwelling” index increased 11% in the past month to 122, rising to its highest level since September 2019.
Westpac chief economist Bill Evans says it as an extraordinary result, stating the overall consumer sentiment index was up 32% in the past two months, and 10% above the average level in the six months prior to the pandemic.
“Such a development must be attributable to the response to the Federal Budget; ongoing success across the nation in containing the Covid-19 outbreak; and the expectation that the Reserve Bank board is likely to further cut interest rates at its next meeting on November 3.”
There was also a “stunning lift” in confidence around job security, says Evans, with the index improving by 14 to early 2019 levels.
Business Conditions Improve: NAB
Business conditions improved in September, recording an increase in the areas of trading (up 6 index points), profitability (up 2 index points) and employment (up 8 index points), according to the September NAB Monthly Business Survey.
The increased confidence has built on the gains of last month and is now well above the trough in March, after the pandemic hit.
Conditions are now above average in WA, SA and Qld, pointing to an ongoing recovery in those states – and though NSW remains negative, it also improved in the month.
The report says: “Confidence rose in most industries in the month, though the gains in retail and recreational & personal services were marginal; and finance, business & property services was unchanged in the month. Confidence is now neutral or positive in all industries except retail and the services industries – personal & recreation and finance, business & property services.”
What has Dot been up to for the month?
Don’t forget to read up on the 15 year itch which is an E book I’ve authored to equip you with strategies to pay off your mortgage in under 15 years. The e book is available on the website or you can get in touch via email to request a complimentary copy.
As always, we hope you enjoyed reading the blog and should you have any questions, please feel free to email [email protected] or you can call us on 1300 000 DOT (368).