, and cautions that long-term falls could in the worst case escalate into an American-sized drop in Australia's property market.
They found that a one percentage point cut in interest rates lifted house prices by 8 per cent in the two years after the move.few years can be explained by the fall in interest rates," they found. The research found that increasing population growth will have some effect on the overall property market, largely by reducing rental vacancies, which in turn lifts rents and encourages more construction.
It’s a no brainer
No shit
Holy bejesus, they must be hiring rocket scientists over there because everybody already knew that. If you can borrow more, that increases competition and drive up house prices and mortgages to banks. Banks love it, real estates love it. Now the pain
Money well spent on that groundbreaking data!! Who would have thought.
No shit
Not only that - but the whole GLOBAL EXONOMY has been 'blown up' by the world's central bankers using the same mechanism!
Must have taken years of study to reach that conclusion .... earth shattering! Sigh.
Maybe we have to read between the lines here? Clearly the RBA feels it is necessary to prove the obvious. Question is, who is this directed at? My guess is those who kneel before the alter of monetary policy.
Clearly shows were in safe hands with those geniuses running the RBA. WTF did they think increasing borrowing capacity would do to house prices?
Nobody believes economists. Their track record of prediction is woeful. They have books of maths theorems that none of them understand and are so inaccurate you may as well chuck darts blindfold into a page of random numbers. It's unscientific.
No Shit Sherlock.
No - you kidding me - when you make borrowing cheaper price go up - didn’t the learn that in their economics degrees from Sydney_Uni - RBAInfo needs real people not econocrats and wealthy
Why wouldn't it? I would have thought that the purpose of reducing interesting rates to increase economic activity.
. Duh!
Hordes of Chinese investors just waiting for a rate cut