The Reserve Bank has as expected left interest rates on hold for October at 2.5 per cent, but certainly changed its stance a little on house price inflation and the Australian dollar.
According to the Reserve Bank the best way to arrest the rapid house price rises is to attack the supply side and increase home building activity.
With house prices in Australia a constant concern for potential first-home buyers, it’s probably little surprise that nearly half of them would want to be able to access their superannuation or have salary rules changed so they could enter the market.
Australians have just been rated the richest people in the world and it’s because of one thing – houses.
Potential property buyers are faced with increasing confusion, with potentially misleading loan-to-value ratios (LVRs) being advertised on home loans.
Fresh data from the Australian Bureau of Statistics show first-home buyer numbers continue to fade.
Australia’s banking regulator APRA has outlined it’s likely response to the threat of a property bubble in Australia.
Interest rates have again remained steady at the record low of 2.5 per cent – the same rate that has been since August last year.
The Harbour City’s house prices are continuing to sizzle, just like their weather will in the coming weeks.
The threat of a property bubble in Australia is a constant presence in the current economic climate, but perhaps there’s a different bubble we should be more concerned about.
