Australia’s Economic Snapshot: What’s Hot and What’s Not in Housing, Spending, and Jobs
It’s time to dive into the latest updates shaping Australia’s economy. Whether you're wondering about the housing market, credit card trends, or how Aussies are spending their cash, we’ve got all the details. Let’s unpack it.
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The Housing Market: Boom Or Bust?
House prices
Big news in the property world! On average, house prices in Aussie capital cities have climbed 6.41% over the past year. Leading the charge is Perth, with a jaw-dropping 26.4% rise (hello, $765,000 median price). Adelaide also saw solid growth at 11.8%, but not everyone’s celebrating—Melbourne’s prices fell 3.9% to $840,000. Ouch.
Unit prices
Units are having their moment, with an average price increase of 7.75% nationwide. Perth is the star performer again, with unit prices up 25% to $525,000, followed by Brisbane’s impressive 21.2% growth to $630,000. On the flip side, Darwin struggled, with unit prices sinking 10.1% to $355,000.
Rentals on the rise
If you’re renting, brace yourself—rents are on the up. House rents climbed 5.3%, while unit rents jumped 9.1%. Perth’s the priciest place to rent a unit, with a 20% surge to $600 per week. Melbourne’s not far behind, posting a 14.6% increase. Canberra renters, however, caught a break with house rents dropping 3.7%.
Mortgage rates
If you’re house-hunting, here’s the deal: the Reserve Bank of Australia reports average new loan rates at 6.3%—higher than last year. Finder data shows average variable rates at 7.08%, but the savviest borrowers can snag deals as low as 5.38% on variable loans or 4.99% on fixed loans. It pays to shop around!
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Retail Spending: Aussies Are Still Shopping
Retail therapy is alive and well! October 2024 saw $36.7 billion spent in stores and online—a solid 3.4% increase from last year. Online shopping is booming, with a 10% jump to $4.1 billion. Food is a growing slice of the pie, climbing 6%, but it’s non-food spending (think clothes, gadgets, and more) that’s shining, up 11%.
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Credit vs Debit: The Spending Battle
Credit cards
Credit card purchases hit $36 billion in October, a 5.32% annual increase. But Aussies are keeping a closer eye on their balances, with cash advances dropping 15.25%. That’s a smart move! The average credit card debt earning interest is $1,578—a reminder to keep an eye on those rates.
Debit cards
Debit cards continue to rule, with spending reaching a record $52.99 billion (up 6.81%). ATMs, though, are becoming a thing of the past, with cash withdrawals dropping yet again. It’s clear we’re living in a tap-and-go world.
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Household Spending: Where’s The Money Going?
October saw Aussie households shell out $73.9 billion, a 2.8% increase from last year. Goods took the lion’s share at $40 billion, but services weren’t far behind at $33.8 billion. That works out to an average of $7,397 per household. What’s driving your spending?_______________________________________
Jobs: Employment Looks Good
Good news on the jobs front! The unemployment rate dropped to 3.9% in November 2024, with 52,571 more full-time roles added. Part-time jobs dipped slightly, but overall, the labour market is looking strong. Underemployment also improved, sitting at 6.1%.
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So, What’s The Big Picture?
It’s been a mixed bag for the Aussie economy according to the November 2024 indicators. Housing’s a win for sellers (but maybe not for buyers), online spending is booming, and more people are back in full-time work. At the same time, rising mortgage rates and tighter credit card balances remind us to stay smart with our money.
Speaking of which, shopping with Grow My Money - where you earn cashback from your shopping into your mortgage and super -is another way to help you get ahead and make the most of your online spending, and combat those rising mortgage rates. It’s free to join so sign up now!
All information sourced from Finder's Economic Snapshot Insights Team