Upwardly, or at least sidewardly mobile
This month the area of concentration seems to focus on a maturing understanding on ‘softening’ housing values felt throughout the real estate industry, but especially in Sydney and Melbourne. The panic is over and industry voices are looking at the way forward, as well as more nuanced and likely future directions.
For example, Domain discusses the current rates of population mobility, and how this can affect the housing market. Are we moving less than we were a decade ago? This article discusses reasons and references that might show this is the case. Statistically speaking, Australians are – overall – one of the more mobile populations on the planet, and although this may be in decline due to increasing financial pressures especially in the cities, it is still above the international average.
Economist for Domain, Trent Wiltshire discussed data of the housing turnover rate that showed the Australian average mobility had fallen to below 5% in the March quarter (2018), which is below the ten year average of around 5.3%.
He states, “If the driver of this is worsening housing affordability, then all governments need to implement policies to improve affordability, such as by increasing the supply of housing in cities.”