House prices growth hit its slowest growth rate in over three years to the end of the June quarter, franking recent RBA statements playing down any fears of a property bubble.
At the end of June this year house prices across the country were 4.1 per cent higher than the same time last year.
The new figures from the Australian Bureau of Statistics reinforce RBA comments in their latest minutes saying housing market pressures have eased.
The Reserve Bank says this easing is because of regulatory crackdowns and surging apartment construction.
The minutes were from governor Glenn Stevens’ last meeting in the role and they also suggested interest rates were set to remain steady for the next few months.
Capital Economics chief economist Paul Dales spoke to The Australian Financial Review.
“The market is not as strong as widely believed and it’s more likely to weaken over the next few years than strengthen further,” he said.
The RBA minutes said the property market was benign outside of Sydney.
“In the established housing market, the number of auctions had declined and remained lower than a year earlier, even though auction clearance rates had increased of late,” the RBA minutes stated.
Glenn Stevens has been replaced as RBA governor by his deputy Phillip Lowe.