See the world through the eyes of an economist: listings, income and pricey English houses.
If you want to know why house prices are going up this year, in a single picture, then it’s this one. This chart shows the dramatic fall in total listings available in the national property market since COVID. There is just no stock available.
And if you want to know why you need to take responsibility for your own financial situation this year, it’s this. This shows real household disposable income per capita for each of the past four decades. In the last decade, we’ve gone backwards. A job is not going to save you.
… and that’s even with the wages of the lowest paid growing at a decent clip (thanks largely to the minimum wage decision). But for 80% of Australians, their wage gains are not keeping pace with inflation.
Going overseas, container rates are surging again on the back of instability in the Middle East. So far it’s not a major problem, but shipping costs we’re a big factor driving the inflation in Covid, so it’s one to watch.
Finally, as property markets around the world continue to boom, this chart here shows that house prices in the UK are more expensive than they were in 1876. Tough time to be a peasant.
And that’s how the world looks through the eyes of an economist this week.
DB.