The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Tuesday, March 22, 2011

Counter-intuitive Aussie housing facts

Since 2003 Sydney dwelling prices--as measured by RP Data-Rismark's market leading hedonic indices--have increased by a compound annual growth rate of just 2.1 per cent compared to an overall national capital city growth rate of 5.2 per cent. Over this same period, per household disposable incomes have outpaced both with impressive 6.3 per cent per annum growth. This trend has continued with more force during 2010-11. Australian capital city home values have risen just 1.2 per cent over the 12 months to end January 2011. In the rest of state markets, which cover the remaining 40 per cent of homes not located in the capitals, house values have actually declined slightly by 0.2 per cent in the year to end January. Over 2010, disposable household incomes on a per household basis--a more conservative estimate than simply looking at changes in aggregate disposable household income--rose at a 6.2 per cent clip. As the chart below shows, Aussie housing market valuations have been improving since 2003. Further gains can be expected this year.