House Prices bounce back in June 2017
Peter Overton: House price growth has picked up again in Sydney, ahead of tomorrow interest rate decision from the Reserve Bank.
The picture across the country is, though, far less clear.
Were some capital cities are skyrocketing, some are spluttering and some are going backwards.
Ross Greenwood: House prices…they’re Australia’s Great Dividing Re-arrange.
Melbourne house prices – in the 12 months to June 30 – grew 15 percent. Sydney 13 percent, Canberra 9.7 percent.
Brisbane and Adelaide, though, barley kept with inflation.
Perth and Darwin prices kept falling.
But it’s the big capital cities driving interest rate and housing policy.
Scott Morrison: Our prudent measures are ensuring that we get to a safe landing in the housing market in Sydney and Melbourne – and avoiding a crash landing.
Tony Morriss: Homeowners can’t assume that interest rates will stay at records lows forever…
Cameron Kusher: We’re seeing interest rates being lifted at the moment to investor; and that’s taking some of the demand out of the market.
Ross: The problem is, there’s only one official Reserve Bank interest rate for the nation and, broadly, banks and lenders charge the same across the country. So while Melbourne and Sydney might justify rate rises to cool their housing market…other states need rate cuts…but that’s not happening.
Tony: In the past three months, Melbourne apartment prices have fallen 2.5 per cent …in Brisbane 2.4% and Darwin down 11.7 percent.
Cameron: What’s driving the ongoing strength in Sydney and Melbourne is the rampant rate of population growth and the fact that those two cities, economically, are so much stronger than the rest of the country.
Ross: Ross Greenwood, Nine News