highlighted the price issue. Dwelling prices nationally grew by 2.8 per cent in March, the fastest monthly result in 32 years.Sydney’s median house price grew by $50,000 through the month, or more than $1600 a day, to reach $1.1 million, while in Melbourne the median increased by $20,000 to almost $860,000.Almost every time the RBA governor stands up to speak in public there is a mention of, or question about, house prices.
Current and former RBA governors Philip Lowe and Glenn Stevens have both said good infrastructure is needed to help take the heat out of property prices.Another factor is where we live. Planning and transport in our major cities mean demand for prime land pushes up prices. Lowe and his predecessor Glenn Stevens repeatedly mentioned the need for good infrastructure to help take the heat out of property prices.
With the economy currently dependent on household consumption, stronger property prices are encouraging people to spend and boosting confidence that delivers wide-ranging financial benefits. “A [commercial] bank can target lending to postcodes or to types of buyers so in that way they can be very successful.”The shortfall between wages growth and house price growth is met by debt. Australian households are among the most indebted in the world with household debt to income of 180 per cent.The research
“In Australia, large mortgages and variable interest rates mean that monetary policy gets a very large bang for its buck,” he says.
swrighteconomy Highlights the fact that... 'Reliance on monetary policy is mindless, ideological nonsense' 👇
swrighteconomy Central banks backed themselves into a corner with their easing since the GFC and have no way to deal with the consequences, except to dig a bigger hole. Their usefulness expired long ago, not hard to see.
swrighteconomy Without proper overarching economic policy from the federal government, the RBA has no effective tools to do anything meaningful....