RBA cuts rates to 3.60% but Australian home prices still jump 5-6% - here's why
Key Points
- Australian home prices are projected to rise 5-6% despite fa...
The Australian housing market is pulling off the economic equivalent of a magic trick: making homes less affordable while interest rates are actually falling. The Reserve Bank of Australia has chopped rates three times this year, dropping the official cash rate from 3.85% to 3.60%, yet a Reuters poll suggests home prices will climb another 5-6% over the next two years.
It's like watching someone lower the price of concert tickets while simultaneously moving the venue further away from public transport.
When Good News Becomes Bad News
The RBA's rate cuts should theoretically make mortgage...
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