. The most constructive thing we can say is that house prices are falling incredibly quickly, albeit at a slightly slower pace than what was recorded a few months ago.
In 40 years of data collected by CoreLogic, the consecutive 2 per cent monthly draw-downs in October and November were the worst months ever witnessed.A similar theme is playing out in Hobart, where the monthly rate of dwelling price declines has accelerated from a 0.2 per cent loss in June to a chunky 2 per cent decline in November.
To be clear, there is a compelling case the RBA should pause to take stock of the damage it is inflicting on the economy. It claims it wants to be data-dependent, and is not on a pre-determined course, but we have seen scant evidence that the RBA is being anything other than deterministic based on its rubbery forecasts., printing at 6.9 per cent for the year to October compared to the 7.6 per cent expected by hawkish economists. Retail sales contracted by 0.
“It takes time for this tightening to impact the demand for goods and services and by extension prices,” Aird continues. So right now there is really no good news on house prices. The pain is set to continue for many more months to come unless the RBA swings 180 degrees and starts cutting interest rates, which nobody expects in the very near-term.
Good times for people with savings