APRA measures are containing housing risk: RBA

APRA measures are containing housing risk: RBA
APRA measures are containing housing risk: RBA

The RBA December board minutes noted the growth in lending to investors in the housing market appeared to have eased, with a moderation in the pace of growth in housing prices in Sydney and Melbourne over recent months.

Housing price growth had mostly remained subdued in other cities.

"In the established housing market, auction clearance rates and housing price growth had declined over recent months in Sydney and to a lesser extent in Melbourne.

"Prices were declining in Perth and rising moderately in much of the rest of the country."

The Reserve Bank of Australia board members observed that the growth of total housing credit had been little changed.

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APRA measures are containing housing risk: RBA

"The easing in housing price growth in Sydney and Melbourne and apparently lower growth in lending for the purpose of investor housing had followed an earlier tightening in lending terms, partly in response to supervisory measures announced by the Australian Prudential Regulation Authority.

"It was still too early to assess the effect of the modest increase in lenders' mortgage rates in November (for both investors and owner-occupiers) on the housing market.

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APRA measures are containing housing risk: RBA

"While the recent changes to some lending rates for housing would reduce demand slightly, overall conditions remained quite accommodative.

"Members observed that supervisory measures had been helping to contain risks that may arise from the housing market."

The December minutes also noted the available data suggested that dwelling investment had increased in the September quarter.

"Building approvals remained at high levels, despite having eased somewhat since the start of the year.

"This was consistent with the expectation of further increases in dwelling investment in coming quarters, albeit at a gradually declining rate."

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APRA measures are containing housing risk: RBA

 

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APRA measures are containing housing risk: RBA

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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