Sydney and Melbourne gradual price fall becoming more widespread: RBA September minutes

The RBA minutes from the September cash rate hold meeting cited the spreading of falling house prices across Sydney and Melbourne.

In July the RBA suggested it was the more expensive properties in Sydney and Melbourne that were seeing falling prices and the lower-priced properties had been little changed.

Now however they are seeing declines across a wider range of markets and areas.

"Housing prices had been falling gradually in Sydney and Melbourne, and in recent months price declines had become more widespread across different suburbs and price segments," the latest minutes read.

The August minutes suggested housing prices had remained relatively stable in most other capital cities, however in the September minutes picked out Perth as a declining housing market.

Some further tightening of lending standards by banks was possible, the RBA advised, although competition for borrowers of high credit quality remained strong.

Elements of the minutes are more of the same. Rent inflation remains low and housing credit growth has declined due to the slowing of investor demand.

They ended by saying established housing market conditions overall had continued to ease.

The members at the meeting suggested further progress needed to be made to reduce the unemployment rate and return inflation towards the midpoint of the target before a rate rise will be considered.

"Since progress on unemployment and inflation was likely to be gradual, they also agreed there was no strong case for a near-term adjustment in monetary policy," the minutes read.

They stand by their belief that the next move in the cash rate would more likely be an increase than a decrease.

To read the minutes in full click here.