The Reserved Bank of Australia has recently announced that they are going to reduce their cash rate by 25-basis-point and with this they will be reaching a record of their lowest ever that is 1.5 per cent. The same thing has already been hinted by the governor of the bank, Glenn Stevens even before the announcement was made.
The Statement on Monetary Policy, that is submitted by the bank quarterly, shows that the deliberations done by the board has been greatly affected by the current state of the housing market in Australia.
According to the statement, the housing market’s development have been taken into careful consideration during the board’s deliberation and it has been noted that there have been some effects due to the supervisory measures that were used in order to make the lending standards more stronger. Other factor that has been considered includes the growth in the housing credit and the pressures due to the high price which needs to be abated.
The Reserve Bank has let go of its preference to the figures shown buy CoreLogic, formerly known as RP Data, in an attempt to show that there is no longer a risk of the housing bubble in the east coast. Instead, they have employed the data provided by Real Estate Institute of Australia as well as APM which is owned by Fairfax.
Based on the statement from RBA, one of the sources of data has shown that there is increase in the housing prices between the months of April and May but the growth is said to be overstated. Another of the sources said that housing price during that period was only modest as well as the latest months.
The Reserve Bank is positive despite the difficult times that the property market in Australia especially of Sydney and Melbourne is booming. Now it has turned as attention to the currently booming residential market of China.
A caution was sent by RBA stating that the latest decrease when it comes to the number of space sold in residential area as well as the slower investment in constructing residential properties have resulted to doubts regarding the strength of the pick-up demand for the beginning of 2016. If you are in Australia, contact http://www.aveling-homes.com.au/ for any real estate need.