483 | Housing is Undersupplied, So WHY are Home Values Falling? – Chat with Eliza Owen

 

In this week’s episode, we’re welcoming back an incredibly passionate and eloquent data analysis and reporting expert who is ALSO a returning guest. Please welcome back… 

Eliza Owen, Head of Residential Research Australia at CoreLogic!    

With her experience as a housing market researcher spanning nearly a decade, Eliza has reported on many of Australia’s critical housing issues, from affordability and credit conditions to the impact of the COVID-19 pandemic on market performance. 

In this episode, we’ll use her brilliant insights to explore precisely WHY we see the numbers in today’s property market, like…   

🏠 With Australia facing an undersupplied housing crisis, why are some market values still falling?!    

📉 How is the housing market defying economic predictions?    

🔄  And what’s going on with the inverse relationship between property values and interest rates?!    

Listen now to find out!  

  

P.S.  Stay tuned till the end for a sneak peek at CoreLogic’s webinar with Eliza & Effie Zahos, celebrating International Women’s Day and all the women in property. 🎉 

 

Free Stuff Mentioned

• Our Birthday Present to You: Free Suburb Report
  Learn how your suburb has performed and its changing community and properties. ‘Cos it’s our birthday month, we’re also giving it away for $0 (Usually RRP $40)  
• Listen to our other episode with Eliza Owen: Episode 308 | Pain & Gain: The Wealth Effect & The Housing Affordability Debate 
• Read Eliza’s CoreLogic articles: 
  • If housing is so undersupplied, why are some markets falling in value? 
  • Relationship breakdown: how the housing market defied economic indicators 

• Read PEXA’s article (Mentioned at 36:48) on Cash property purchases surge on the back of strong regional demand 
• Read CoreLogic’s “Women & Property 2023” Report. (Keep your eyes peeled for the updated 2024 version: “Gender Equity in Property Ownership” report, releasing 8 March)
• Register for CoreLogic’s “The Property Ownership Insights & Financial Empowerment” Webinar held on 14 March featuring Effie Zahos and Eliza Owen.  
• (Not Free) Watch the PICA Webinar replay! Become a member and watch The Property Investors Council of Australia’s recent webinar on 2024 property predictions and shed insight into Buyers Agents’ role.  

 

Graphs mentioned

Timestamps

• 0:00 – Housing is Undersupplied, So WHY are Home Values Falling?  
• 1:32 – Our 9th Birthday, can you help us + PICA Webinar Replay  
• 4:09 – Mindset Minute: The Paradigm for Investors 
• 9:17 – Welcome back Eliza Owen!  
• 10:40 – Recap & Money Backstory  
• 12:05 – Eliza has never used a credit card: Financial conversations & emotional responses to money 
• 16:48 – Why she decided to buy a unit over a house!  
• 21:56 – If housing is so undersupplied, why are some markets falling in value? 
• 24:35 – How does changing family and renter demographics affect demand?  
• 27:46 – The social problem with housing  
• 30:18 – What is True Demand?  
• 31:44 – If interest rates go down, will APRA’s 3% buffer rate go down  
• 32:50 – How the housing market is defying economic indicators 
• 33:43 – The inverse relationship of property values and interest rates  
• 36:48 – 25.6% of properties purchased in cash?!  
• 38:22 – The masterstroke in Western Australia’s market  
• 41:24 – Are we seeing green shoots?  
• 44:05 – How much of what we saw in 2023 is due to behavioural economics?  
• 45:31 – If rates don’t pause, will more homeowners be forced to sell?  
• 48:46 – The changing gap between housing and units 
• 54:08 – The Substitution Effect: The Buyers of 2015/16 
• 59:11 – Why CoreLogic’s “Women & Property” report matters 

And…  

• 1:05:09 – What a fantastic session, thank you Eliza!  
• 1:07:44 – Lifehack: How to stop feeling overwhelmed when juggling life  
• 1:10:52 – WMPN: Greens going to vote against Labor’s Home Deposit Scheme 😮