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Rising property prices get consumers spending - Reserve Bank Australia

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  • Rising property prices get consumers spending - Reserve Bank Australia

    Australia - the lucky country. We have scoffed at that for years however you can't but feel a little envious of their take on the value of rising house prices.....

    Despite worries about housing affordability as low-interest rates fuel a house price boom, the Reserve Bank is mindful of the economic benefits of a rising property market, which encourages consumers to spend more.

    The central bank is not required to act to improve affordability and has let prices run while focusing instead on whether banks are lending to borrowers who can afford to repay, saying in its monthly statement on Tuesday that it “will be monitoring trends in housing borrowing carefully”.
    No pressure on the RBA to work on affordability, why? Adrian Orr didn't want the additional mandate -

    Orr had argued that adding housing to the bank’s mandate could make monetary policy less effective and impact financial market efficiency, adding that monetary policy alone could not fix the housing problem.
    He too must be eyeing the RBA with envy.

    cheers,

    Donna
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    BusinessBlogs - the best business articles are found here

  • #2
    Originally posted by donna View Post
    Australia - the lucky country. We have scoffed at that for years however you can't but feel a little envious of their take on the value of rising house prices.....



    No pressure on the RBA to work on affordability, why? Adrian Orr didn't want the additional mandate -



    He too must be eyeing the RBA with envy.

    cheers,

    Donna


    I just read about twenty articles on the Australian property situation.
    To get an unbiased view on what's happening there, and the Reserve Bank's position on it.
    I can't say that your take is very accurate.
    I found it difficult to even find an article that supported your take.

    I've been keeping an eye on all overseas property markets, but wanted to get the very latest.
    Last edited by McDuck; 07-05-2021, 11:38 AM.

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    • #3
      ^^ did you click the link to the article I quoted McDuck?

      Maybe read this again.....

      cheers,

      Donna

      Either house prices keep rising as the RBA lets the market run in a bid to boost the economy, or regulators worry about risky investors and make it harder to get a loan. Not much of a choice?
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      • #4
        Oh and this one....McDuck

        The RBA will closely watch the Reserve Bank of New Zealand’s move to consider house prices in setting interest rates, but is not likely to follow suit.
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        BusinessBlogs - the best business articles are found here

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        • #5
          What you did, was this.
          It's called confirmation bias and selection bias.

          Look here's a report that says smoking is good for you.

          https://www.livescience.com/15115-5-...g-disease.html

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          • #6
            ^^ Welcome to 'life' McDuck. What in life is not selection bias?

            cheers,

            Donna

            SEARCH PropertyTalk, About PropertyTalk

            BusinessBlogs - the best business articles are found here

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            • #7
              Ha true.


              I did see one idea in all those Auzzie reports that tickled my fancy.
              It was so eloquent.

              Went something like this.

              With property investors competing with first home buyers for property, and winning.
              They are creating their own customers.

              Apart from that,

              I'm not going to comment further on the Aussie situation.
              I will say that I believe the NZ market is about six months ahead of Australia's, (because we got the virus under control earlier).

              Comment


              • #8
                ^^ yeah I'm with you on that - though NZ is fragile and could very well end up with one loose in the community from the travel bubble.

                cheers,

                Donna
                SEARCH PropertyTalk, About PropertyTalk

                BusinessBlogs - the best business articles are found here

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