The biggest change in the change of guard in the RBA from Glenn Stevens to the current Governor Phillip Lowe is the issue of housing affordability particularly for first home buyers. Dr Lowe keeps talking about how a lowering of interest rates can affect the borrowing decisions of an already highly leveraged home buyers. The lenders have also started to significantly tighten the criteria for approval of dwelling loans. The investment loan market has seen a decline - which all points to an uncertain period in the housing market.
The other important factor - particularly for the investment market is the 30 June deadline for concessional super contributions which has resulted in a number of properties being offloaded. This may mean a softening of the market and we believe that Sydney apartment prices are more likely to plateau than grow. The RBA will be keenly watching this situation as it decides on interest rate decisions in the coming months.
The other important factor - particularly for the investment market is the 30 June deadline for concessional super contributions which has resulted in a number of properties being offloaded. This may mean a softening of the market and we believe that Sydney apartment prices are more likely to plateau than grow. The RBA will be keenly watching this situation as it decides on interest rate decisions in the coming months.
MARKET DATA
| Australia Cash rate Australia 90 day bank bill Australia 10 y bond US 10y Govt bond AUD/USD AUD/EUR AUD/JPY AUD/CNY ASX 200 S&P 500 Dow Jones Shanghai Composite Brent Oil (USD per BBL) Gold Spot (USD per oz) Iron Ore | 24-Feb 1.50 1.78 2.69 2.31 0.7717 0.7293 87.06 5.3015 5738 2367 20821 3253 55.99 1257 87.12 | 17-Feb 1.50 1.77 2.71 2.41 0.7645 0.7170 86.92 5.2582 5720 2316 20269 3196 56.70 1233 84.11 | 1 year ago 2.00 2.28 2.43 1.74 0.7107 0.6387 80.20 4.6338 4952 1917 16391 2860 33.01 1226 42.84 |
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