Another key piece of data released this week was the National Australia Bank’s Business Survey which reported that business confidence has moved into positive territory for the first time since December 2007. Along with the good news on business confidence, the NAB survey shows business conditions improved sharply with the index returning to levels not seen since September 2007. This latest data also suggests that employers are not shedding staff as rapidly as was expected which may lead to unemployment levels remaining lower than the 8.5% forecast for mid next year.
The number of new residential property listings across Australia remains at about 10,000 new properties being added to the market each week. The total number of properties being advertised for sale has also remained steady at about 115,000 dwellings. The fact that total stock levels are remaining steady indicates that absorption of stock is about neutral: as many properties are being sold as are being added to the market.