RBA happy about Sydney Housing Decline
Unlike most home owners and real estate agents, the Reserve Bank of Australia (RBA) couldn’t be happier with the weakening property market in Sydney.
According to the minutes of RBA’s latest board meeting, the board spent significantly more time than usual assessing the complex connection between Australian property values household debt and economic activity.
“In the first place, the RBA will be reassured there’s little sign that the country’s house price bubble is headed for a spectacular collapse,” the news portal noted.
More importantly though, the central bank recognized that Sydney and Melbourne property prices are gradually trending lower and noted that this is what they wanted to see.
RBA stated that “housing prices had declined in Sydney and Melbourne following significant increases in previous years,” pointing out that “housing prices had fallen by almost 5% in Sydney over the preceding year.”
The minutes of the meeting provided a concrete reason for the downturn, saying that “housing credit growth had declined, mainly because investor demand had slowed noticeably.”
Another reason given are the stricter lending standards adopted by bankers. RBA further acknowledged the possibility that banks will implement stricter lending standards following the royal commission.
If you’re wondering if it’s a good time to buy or sell property, speak to a Successful Ways professional.
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