We’ve All Had an Apple Out of That Sack

When I first gave my life to Christ I felt so incredibly clean, so new, and fresh it was truly like being born-again.  My old life was washed away and I was a babe in Christ.  Then as I devoured Hi...

Dr. Robert Owens - avatar Dr. Robert Owens

Domestic abuse or genuine relationship? Our welfare system can't tell

Financial abuse can be misinterpreted as 'sharing finances', which can indicate a relationship in the criteria of the couple rule. ShutterstockIn Australia’s social security laws, the “cou...

Lyndal Sleep, Research Fellow, Griffith University - avatar Lyndal Sleep, Research Fellow, Griffith University

Friday essay: why old is new again - the mid-century homes made famous by Don's Party and Dame Edna

A Royal Victorian Small Homes House, designed in conjuction with The Age newspaper, 1955. Photo: Wolfgang Sievers. Pictures Collection, State Library VictoriaOf all the mantras for modernism, the one ...

Kirsty Volz, PhD Candidate, The University of Queensland - avatar Kirsty Volz, PhD Candidate, The University of Queensland

How public libraries can help prepare us for the future

Public libraries can use their status as community hubs to engage the public in scenario planning for the future.Mosman Library/Flickr, CC BYFor generations, libraries have helped people explore knowl...

Matthew Finch, Adjunct Research Fellow, University of Southern Queensland - avatar Matthew Finch, Adjunct Research Fellow, University of Southern Queensland

One-third of all preschool centres could be without a trained teacher in four years, if we do nothing

Currently, half of all early childhood teachers have a bachelor degree, with a further one-third still working towards one. from shutterstock.comOne-third of all preschools may lack a qualified teache...

Megan O'Connell, Honorary Senior Fellow, University of Melbourne - avatar Megan O'Connell, Honorary Senior Fellow, University of Melbourne

Not one but two Aussie dishes were used to get the TV signals back from the Apollo 11 moonwalk

US astronaut Neil Armstrong on the Moon during the Apollo 11 mission.NASAThe role Australia played in relaying the first television images of astronaut Neil Armstrong’s historic walk on the Moon...

John Sarkissian, Operations Scientist, CSIRO - avatar John Sarkissian, Operations Scientist, CSIRO

How our obsession with performance is changing our sense of self

How well we do – at work or on the sports field – influences how we see ourselves.from www.shutterstock.com, CC BY-NDWe live in a society obsessed with performance. For both young and old...

Ben Walker, Lecturer (Management), Victoria University of Wellington - avatar Ben Walker, Lecturer (Management), Victoria University of Wellington

Australian writer Yang Hengjun is set to be charged in China at an awkward time for Australia-China relations

Charges against Yang appear to relate to his work as a writer and blogger in which he has been sharply critical of the Chinese regime. Facebook Australia’s relations with China will be further c...

Tony Walker, Adjunct Professor, School of Communications, La Trobe University - avatar Tony Walker, Adjunct Professor, School of Communications, La Trobe University

More than 28,000 species are officially threatened, with more likely to come

A giant guitarfish caught in West Papua is hung from a fishing boat. Guitarfish are in trouble, according to the IUCN Red List. Conservation International/Abdy Hasan, Author providedMore than 28,000 s...

Peter Kyne, Senior Research Fellow in conservation biology, Charles Darwin University - avatar Peter Kyne, Senior Research Fellow in conservation biology, Charles Darwin University

Grattan on Friday: Being a Trump 'bestie' comes with its own challenges for Scott Morrison

It's now widely observed that Morrison and President Donald Trump have struck an early bromance.AAP/Lukas Coch“How good is this?” Scott might have said to Jenny, when word came that he&rsq...

Michelle Grattan, Professorial Fellow, University of Canberra - avatar Michelle Grattan, Professorial Fellow, University of Canberra

Australian universities must wake up to the risks of researchers linked to China's military

Two universities are conducting internal reviews of research collaborations linked to the suppression and surveillance of the Uyghur minority in western China.Tracey Nearmy/AAPTwo Australian universit...

Clive Hamilton, Professor of Public Ethics, Centre For Applied Philosophy & Public Ethics (CAPPE), Charles Sturt University - avatar Clive Hamilton, Professor of Public Ethics, Centre For Applied Philosophy & Public Ethics (CAPPE), Charles Sturt University

US Democratic presidential primaries: Biden leading, followed by Sanders, Warren, Harris; and will Trump be beaten?

Joe Biden is the frontrunner for the Democratic nomination.AAP/EPA/Justin LaneThe next US presidential election will be held on November 3, 2020. Incumbent president Donald Trump will almost certainl...

Adrian Beaumont, Honorary Associate, School of Mathematics and Statistics, University of Melbourne - avatar Adrian Beaumont, Honorary Associate, School of Mathematics and Statistics, University of Melbourne

Opera Australia's Whiteley brings together 3 icons to tell the artist's complicated story

Leigh Melrose as Brett Whiteley in Opera Australia's 2019 production of Whiteley at the Sydney Opera House. The opera focuses on the artist's addictions and his relationship with his wife. Prudence U...

David Larkin, Senior Lecturer in Musicology, University of Sydney - avatar David Larkin, Senior Lecturer in Musicology, University of Sydney

Are sports programs closing the gap in Indigenous communities? The evidence is limited

Sports have long been seen as a way to improve outcomes in Indigenous communities, but more research is needed to structure better programs.Paul Miller/AAPIndigenous Australians have a long and proud ...

Rona Macniven, Research Fellow, University of Sydney - avatar Rona Macniven, Research Fellow, University of Sydney

The latest data from the Australian Bureau of Statistics confirms household wealth has fallen, on the back of falling house prices, in the past year.

But it’s not all bad news. There are signs of hope in the portents for the next six months.

During the first quarter of this year, the net worth of all Australian households rose 0.2% to A$10.2 trillion. Total household net worth in March 2019 was 0.7% lower than in March 2018, largely because of steep falls over the final six months of 2018.

The per capita annual decline was larger, falling by about 2.4%, because of population growth. This means the average wealth of Australians dropped by about A$9,500, from A$414,400 to A$404,900.

ABS This household “balance sheet event” – defined as an annual decline in household sector net wealth – is the third in the past 30 years. The other two were through the Global Financial Crisis of 2008 and immediately after. Housing (land and dwellings) comprises 52% of household-sector assets. Superannuation comprises 24%. Property values fluctuate with real estate prices, while superannuation is highly exposed to volatility within the financial markets. Consumer spending The next chart highlights the relationship between changes in household net worth and spending on discretionary items and durable goods. ABS But what is interesting is that consumer sentiment has not been significantly affected. The following chart shows household net worth vs Westpac’s consumer sentiment data. This is the first major downturn in household net wealth in 30 years that has not coincided with weaker consumer sentiment. ABS & Westpac It’s hard to know for certain why consumer confidence has remained relatively steady, but two things stand out. First, the consumer financial adjustment has been orderly and deliberate as opposed to rapid and forced. It appears people have consciously adjusted spending and savings patterns to achieve long-term savings goals. Second, there has been ongoing strength in the labour market. Despite falling wealth, people still have jobs and this reinforces confidence. Shares and housing stocks It is safe to say consumers will start spending more once they feel their asset position has stabilised. Strong equity markets have played a big role in shoring up household wealth since the start of this year. As the next chart demonstrates, they could continue to do so over the period ahead. ABS & Bllomberg But the big swing factor is house prices – specifically land values. The Reserve Bank’s interest rate cuts should help stabilise house prices over the second half of 2019. Our last chart suggests this appears to have started, with auction clearance rates improving in recent months. ABS, CoreLogic & Bloomberg This all suggests household wealth could start growing again in the second half of the year. That should go a long way to stabilising the economy.

Authors: The Conversation

Read more http://theconversation.com/australian-household-wealth-has-taken-its-biggest-dive-since-the-gfc-but-things-are-looking-up-119001