- Tags: property investment, property trends
After months of pessimism in the media about the economy ABS
figures for spending are up in January.
I recently read a November 2013 survey by a company called Forseachange. The survey covers future intentions and most of it’s findings have come to pass. What makes it interesting is that It also looked at property. They have an interesting way of analysing consumer trends, among other things they offer people a notional $1000 and ask them what they would do with it.
The respondents are categorised by ages and divided into four groups, Frugal Spenders, Frustrated Spenders, Reluctant Spenders (No Worry’s) and Profligate Spenders.
“Perceived financial well-being has improved in 2013 with 51% saying they have money left over after meeting commitments compared to 46.6% in 2012 the proportion who feel they have few financial concerns (No Worries) has a significant correlation with retail sales volume and also has a significant upward trend”. There has been a significant downward trend in the size of the frugal spenders segment. The size of the profligate Spenders segment which is both willing and able to spend shows an upward trend.
On the subject of interest rates since late 2012 has been a fall in the proportion wanting interest rates to fall and now there is little gap between the proportion wanting interest rates to fall at the proportion wanting interest rates to rise. There has been a massive jump in the proportion expecting house prices to rise, almost to a record level. This suggests that sellers will be asking for higher prices and that buyers will have to be prepared to pay higher prices.
The size of the No Worries segment has a significant positive correlation with retail sales volume growth. Since late 2012 is been a significant lift in the size of the No Worries segment among people aged 65+, back to the levels of 2007.
In November they were saying all this will impact on retail sales, food volumes, department store sales, household goods sales, café and restaurant sales volumes.
At First National we are all about property so getting down to the nitty-gritty two thirds of those saving for a house expect to achieve their savings goal within three years, 15.1% expect to reach their housing goal in the next six months and 19% expect to reach it in the following six months.
By broader age group among 18 to 29-year-olds22.3% would save for a house and among 30 to 44-year-olds 10.2% are saving for a house. Once you go past these age group holidays, rainy days, children and children’s education all come into it.
Despite the negativity over jobs in the past six months Gold Coasters seem acting as predicted. Demand for rentals and sales are both strong.
by David Hamilton Consumer confidence is on the up, according to the ABS
palmbeachfn.com.au March 2014
First National Palm Beach
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