Crazy, complex and concerning, RBA Glenn Stevens' frank views on house prices

A week after Treasury boss John Fraser said the Sydney housing market was unequivocally in a housing bubble, the Reserve Bank boss Glenn Stevens suggested some house prices were “crazy”.

“Yes, I am very concerned about Sydney. I think some of what’s happening is crazy,” he told a business lunch in Brisbane yesterday.

"But we have a national focus to manage as well, that just increases the complexity," he advised.

He said the steep rises in property prices in Australia’s biggest city were “acutely concerning” and that the issue was a social problem.

"Do you want me to comment on the housing market?" he jested before embarking on his startling insight.

The Reserve Bank governor Glenn Stevens left open the possibility of a further interest rate cut but warned against expecting monetary policy to do too much of the work in boosting economic growth.

The craziest price Property Observer has spotted was at 33 Parer Street, Maroubra which fetched $1.46 million at April auction through N G Farah agent Cameron Airlie.

The two bedroom semi on 310 square metres had previously sold at $1 million in March 2013, so unchanged barring a coat of paint over the two year gap.