Australians pull back on housing spend, fork out on transport, travel and retail after months of lockdowns

Australians have pulled back on spending on housing, instead forking out cash on transport, travel and retail shopping as much of the nation reopens after months of lockdowns.

That’s according to the second Commonwealth Bank household spending intentions report released on Tuesday.

It’s based on transaction and lending data combined with publicly available Google search terms, covering 12 spending categories, and provides a fascinating picture of Australians emerging from lengthy pandemic-induced habits.

The home-buying index plunged sharply by 27.5 per cent in November and is now down 17.6 per cent compared with the same month last year.

CBA said seasonal factors heading into Christmas were likely at play but recent data also showed a moderation in demand, particularly by owner-occupiers after a whopping 22 per cent surge in prices over the past year.

The pace of growth in dwelling values had slowed, the bank noted, saying that supported its view expressed last month that prices would likely rise a more modest 7 per cent in 2022 and fall 10 per cent the following year as higher interest rates take effect.

Aussies were out and about last month, with the transport index soaring 21.5 per cent month-on-month and up a huge 39.4 per cent on last year.

The numbers for travel were almost as impressive, rising 14.7 per cent last month and 25 per cent compared with November 2020.

The retail index lifted 9.6 per cent month-on-month and 5.6 per cent over the year, pointing towards a strong Christmas shopping period, CBA said.

That’s supported by accumulated household savings during Covid-19 that the bank estimated at $240bn as of the September quarter.

The strongest demand last month was for clothing, shoes, watches, jewellery, luggage and leather goods, pet products, furniture and household equipment, and electronic goods and appliances.

Shoppers also flocked to department stores, newsagencies, hardware stores and florists.

But they spent less on packaged alcohol, window coverings, nursery and garden supplies, arts and crafts, and antiques.

In a sign that people are spending more money on end-of-year events, there was increased demand for cosmetics, tailors and alterations, and clothing rentals.

All those Delta restrictions clearly left Australians weary of their sofa-based streaming binges, with the entertainment index lifting 8.5 in November, but it’s down 6.6 per cent on an annual basis.