100% Locally Owned, Independent and Free

100% Locally Owned, Independent and Free

House price growth 'fastest in 32 years' as RBA reviews state of nation's economy

Do you have a news tip? Click here to send to our news team.

Industrial site sells for $3.4m in off-market deal

A freestanding industrial facility has fetched $3.4 million in an off-market transaction, highlighting the ongoing strength of the Sunshine Coast market. The sale of the More

$250k makeover for supported living home

Five housemates have moved back into their supported independent living house after a five-month, $250,000 renovation to refresh and modernise their ‘family’ home. Buderim housemates More

Deadly snake found far from home sparks investigation

A highly venomous snake has been found far from its usual range, sparking a rare job for snake handlers and an investigation by authorities. A More

Long-term holiday park tenants could be phased out

Sunshine Coast Council may gradually phase out long-term residents at a local holiday park by adopting a “natural attrition” approach to tenancy agreements. Currently long-term More

Duo charged over alleged armed carjacking

Two people have been charged after investigations into an alleged armed robbery and assault incident on Sunday. After intensive investigations by the Petrie Criminal Investigation More

Residents push for electorate boundaries shift

Residents within multiple towns are pushing for some state electorate boundaries to be moved to better reflect their local interests. Community members have called for More

Economists expect the Reserve Bank will keep its interest-rate settings steady, although will be keen to hear its views on housing, which is experiencing its fastest price growth in more than three decades.

Economists expect central bank governor Philip Lowe to stay on message at the monthly gathering on Tuesday – that is, interest rates are likely to remain at record lows until 2024.

The latest figures show house prices have grown at their fastest pace in 32 years, while home lending and building approvals are at, or close to, record highs.

CoreLogic research director Tim Lawless noted the last time Sydney prices were growing at such a frenetic pace was in mid-2015.

At the time, Australian regulators felt compelled to slow the pace of investor demand by putting limits on lending.

This time around, it appears to be first-home buyers that are holding court with demand for mortgages 65.8 per cent higher than a year earlier, buoyed by low lending rates.

At this stage, Australia’s Council of Financial Regulators – the RBA, Treasury, the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission – appear relaxed.

The heads of these regulators have made it clear it is not their job to regulate house prices, but they will step in if lending standards show signs of slipping.

Help keep independent and fair news coming by subscribing to our free daily news feed. All it requires is your name and email. See SUBSCRIBE at the top of this article 

The RBA will also release its twice-yearly financial stability review later this week, which may garner more interest than usual in regard to the housing sector.

In the meantime, the central bank will continue to pursue lower unemployment, higher wage growth and more normal inflation pressures through a mixture of a cash rate at just 0.1 per cent and a hefty bond-buying program.

ANZ will release its monthly job advertisement series on Tuesday, a key pointer to future employment.

The report comes at a time of some uncertainty over the impact of winding back government supports.

JobKeeper wage subsidies and coronavirus supplements for welfare recipients ended last week. Treasury has estimated up to 150,000 jobs could be lost from the demise of JobKeeper.

Subscribe to SCN’s free daily news email

This field is hidden when viewing the form
This field is for validation purposes and should be left unchanged.
[scn_go_back_button] Return Home
Share