Affordability

For all the cries of affordability killing the RE market, prices are still experiencing modest rises. As I explained to the affordability proponents here more than a year ago, while the housing stock remains in a dire deficit with no quick fix, employment remains buoyant and rentals almost unaffordable the affordable question is all but null and void. More so in the wake of both political parties distorting the sector with policy promises and the prospect of lower IR's in the coming year.
Caveat being that Trump's tariff fight with China carries the risk of effecting Australia resulting in higher unemployment. The question is: will lower IR's and the continuing housing deficit even-out the risk of our RE sector going negative. And then there's high risk of a Trump inspired stock market crash to factor in.
In any case, interesting days ahead, but so far affordability is not a significant factor.