Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), and CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

4 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he is one of the finest property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete Wargent is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data and charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, and author of the New York Times bestsellers 'End Game' and 'Code Red'.

"Pete's daily analysis is unputdownable" - Dr. Chris Caton, Chief Economist, BT Financial.

Tuesday, 16 May 2017

SUVs taking over Australia

Motor vehicle sales bounce

New motor vehicle sales bounced nicely to 97,136 in April thanks to increases in New South Wales and Victoria, but are now tracking some way below the peak of just over 100,000 in the month of September last year.   


1.17 million new units were shifted over the year to April 2017, one for about every 16th adult in Australia. 


Amazingly the number of Sports Utility Vehicles (SUVs) sold in April approached the number of passenger vehicles, following an astronomical rise. It appears to be only a matter of time before SUVs are the number one product, which is remarkable. 


At the state level, sales in Queensland may have been knocked back a little by severe weather, and only Victoria remains in a convincing uptrend, being the state with the fastest population growth rate.


Finally production volumes continue to drop off a cliff as product lines are discontinued in Australia and the car manufacturing industry is shuttered. 


Automotive production volumes fell to just 6,937 in April, some 50 per cent lower than a year ago.

The wrap

New vehicle sales remain soft in the resources states. However, the Reserve Bank noted in its Board Meeting released today that:

"Recent data had provided further signs that the downswings in the Western Australian and Queensland economies were coming to an end."

Almost everything about the Minutes suggested to me that the official cash rate could be on hold for a long time.