Stephen Koukoulas - House Prices
House prices - it’s the topic on everyone’s lips and it’s a topic where everyone has a view. Next week sees a factual update on house prices trends with the release of the Australian Bureau of Statistics house price series for the December quarter. There seems little doubt that prices rebounded strongly, especially in Melbourne and Sydney.
The market is forecasting the annual increase in national houses to accelerate towards 10 per cent, which is an inconvenient fact for the Reserve Bank as it continues to fret about the risk of growing financial imbalances.
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