Reserve Bank says property market buoyed as households downsized

 A sharp fall in the size of households, as people moved out of share houses or their parent’s homes, helped offset the effect of the collapse of immigration on the Australian housing market, the Reserve Bank believes.

In a speech on the property market this morning, the bank’s assistant governor Luci Ellis also noted government programs – including the federal Coalition’s HomeBuilder subsidy – helped to push up prices while she also warned rents in Sydney and Melbourne may rise quicker than expected.

House prices soared at their fastest rate in more than 30 years during the pandemic on the back of government support programs and record low official interest rates despite stagnant population growth. House values are now starting to fall while the RBA last month increased interest rates for the first time since 2010.

Read More: https://www.smh.com.au/politics/federal/reserve-bank-says-property-market-buoyed-as-households-downsized-20220525-p5aoau.html



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