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Australian Housing Market

When you read articles about Australian housing affordability, it is often comparing the single average adult wage to house prices, from generations ago.

The articles generally say something like, ‘a house was worth three times the annual average wage back in the sixties and is now worth 10 times the average wage. This shows housing has become unaffordable.’

You can’t compare the two because back in the sixties it was one wage bidding on real estate.

The state of Australian housing

The days of Dad going off to work, while Mum tends the children are long gone, just like the black and white TVs of that era.

It is now usually at least two incomes bidding on Australian real estate, land price has quickly factored that in. So you can’t compare the two figures.

These days you need to find historical figures for combined household income and compare the two.

When you do that you may find housing affordability hasn’t run away at all, but is simply keeping pace with wages.

The House Always Wins in the End

Answering the Most Asked Question: Will the Cycle Peak Early?

In today’s Land Cycle Investor, we unpack how, for many, it’s almost impossible to buy into the notion that land prices can climb higher, considering the rapid hike in lending recently, reducing purchaser’s budgets and hitting consumer confidence. Plus, property forecasts for 2023 from most major data agencies remain negative. But our forecasts are not ‘copy and pastes’ from mainstream reporting. Ours are based on the 18-year cycle. Read on to find out whether our methods are pointing to an early cycle peak…

By Catherine Cashmore, Thursday, 15 December 2022

Where to Buy in 2023? – with Louis Christopher

In this interview, Catherine Cashmore sits down with SQM Research Founder Louis Christopher to discuss his 2023 property market forecasts which are outlined in his annual Boom & Bust report. Learn where Louis believes the will be the ripe and dull regions around Australia, and whether that aligns with Catherine’s own predictions which are based […]

By Catherine Cashmore, Wednesday, 14 December 2022

The Darwin Boom Take Two — and Where to Find the Next Gentrification Hot Spot!

In today’s Land Cycle Investor, Louis Christopher follows up on his dire prediction for Darwin from last week. It’s very hard to see his forecast playing out, particularly in the short term. Find out the pockets to target if you’re looking to enter the market and benefit when the market does turn…

By Catherine Cashmore, Tuesday, 13 December 2022

Is Darwin Going to Boom?

In today’s Land Cycle Investor, Louis Christopher of SQM Research has a pretty dire forecast for Darwin, believing prices will struggle to reach positive territory. Yet, this doesn’t align with the forecasting we’ve made based on the 18-year cycle. Read on…

By Catherine Cashmore, Thursday, 08 December 2022

Doc Long and the Long Cycle — What It Can Tell Us about the Years Ahead

In today’s Land Cycle Investor, I introduce you to the work of Clarence (Doc) Long, a US economist and politician who defined the long property cycle as being between 18–19 years. Read on for a short breakdown of his analysis and how we can apply it to the Australian property market to forecast what’s to come…

By Catherine Cashmore, Tuesday, 06 December 2022

Housing myths exploded

Why Housing Stocks Could Spring Higher

In today’s Daily Reckoning Australia, Louis Christopher from SQM Research has just released his latest ‘Boom and Bust Report’ outlining his forecast for the Aussie property market for 2023. In true Louis fashion, his predictions are going against public opinion. But what’s interesting is that the stock market is agreeing with him! Read on for the details…

By Callum Newman, Friday, 02 December 2022

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Email: support@fattail.com.au

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All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

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