House Prices As Bad As They Get
The newly appointed deputy chair of the Australian Prudential Regulation Authority (APRA) talking at a FINSIA conference last month said that APRA’s “stability measures” - in other words their restrictions on bank lending introduced last year - have helped prepare the Australian economy for “an unseasonable cold snap”. Really?
APRA are perhaps ignoring the fact that rather than prepare Australia for a "cold snap" they may in fact have caused it.
Here is a table of house prices from CoreLogic as at the end of November. Sydney house prices have been down 8.1% in the last year, Melbourne house prices down 5.8%. Melbourne and Sydney between them account for 55% of the Australian housing market by value. The national annual fall in...Continue Reading