Falling house prices could slow the overall economy, Reserve Bank governor Philip Lowe has conceded while arguing there were still positive signs a strong jobs market will underpin the nation over the next year.
"Over recent years, spending by households has risen at a faster rate than household income; in other words, the saving rate has declined," he said. The RBA left official interest rates at 1.5 per cent at its March board meeting on Tuesday. Financial markets believe the bank will be forced into cutting rates at least once in the next 12 months.
"This is similar to the picture internationally. In a number of countries, including our own, there is growing tension between strong labour market data and softer GDP data. We are devoting significant resources to understanding this tension."
swrighteconomy It’s a good thing prices are falling. They went up too far. It could be called ‘natural variation’. But the media will turn it into alarmism no matter which way it goes. Same thing happens with climate change.
swrighteconomy Over the next 4yrs house prices need to drop further, mortgage interest rates need to remain low & negative gearing needs to be at least capped. Rome wasn’t built in a day - 4yrs is reasonable for BankingRC victims to recover from the 2007 GFC.
swrighteconomy So sad house prices are falling under the LNP, it is on their watch and under their policies and under this PM and Treasurer. The Reserve Bank is making that clear so suck it up.
swrighteconomy How long can the crazy house price speculation go on. Some day it will need to be corrected that will cause pain. Money invested in empty assets is not sustainable.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Property Property Latest News, Property Property Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
House price falls in Sydney and Melbourne accelerated through February'If Melbourne's downturn continues at a similar pace we are likely to see the annual decline move into double digit falls over the coming months' *weeks Our over priced market is finally coming back to reality and everyone is in a panic. How about some truth from media for a change or is that no longer something you value?
Source: theage - 🏆 8. / 77 Read more »
House price falls in Sydney and Melbourne accelerated through FebruaryMelbourne house values tumbled by 1.2 per cent in February and 11.5 per cent over the past 12 months.
Source: theage - 🏆 8. / 77 Read more »
House price falls in Sydney and Melbourne accelerated through FebruarySydney and Melbourne house values down more than 1 per cent in February as property decline widens | swrighteconomy swrighteconomy Over Primed Property. Just like Sub Prime. without safety Net for victims of mass manipulation by Regulators. Reserve Bank Governor's. With Governments. Robbing savers to REWARD speculators swrighteconomy Next move will be higher immigration to save the media led urban elites whose greed, speculation and over development caused the problems in the first place.
Source: smh - 🏆 6. / 80 Read more »
House explodes as massive Bunyip blaze threatens to burn more homesFirefighters and residents are bracing for more homes to be lost to a massive, out-of-control bushfire that is threatening at least seven Gippsland towns east of Melbourne. Really sad.
Source: theage - 🏆 8. / 77 Read more »
Australian house prices fall a further 0.7 per cent | Sky News AustraliaAustralian house prices have fallen a further 0.7 per cent with Sydney and Melbourne suffering the biggest fall over the past year, according to the latest figures from CoreLogic.\n\nIt means house prices are down nearly 7 per cent from their peak in October, 2017.\n\nBut the pace of declining property values have eased slightly in February compared to the previous two months.\n\n\n\n excellent news now struggling young families might stand a chance.
Source: SkyNewsAust - 🏆 7. / 78 Read more »
Victorian bushfires LIVE: House explodes as massive Bunyip blaze threatens to burn more homesAt least two homes and three other buildings have been destroyed as fires continue to rage across Victoria. I'm in Warragul and it's getting bloody scary, black as, with embers coming down.
Source: theage - 🏆 8. / 77 Read more »
Victorian bushfires LIVE: House explodes as massive Bunyip blaze threatens to burn more homesLIVE: Homes have been destroyed and roads closed as a number of fires across several fronts continue to rage across Victoria's east
Source: theage - 🏆 8. / 77 Read more »