Australian Housing Affordability Rise Coincides With Reserve Cash Rate Decision
Nationally housing affordability is growing due to Australian median home prices falling further and marginal growth in wages. This rise in affordability also coincides with the Reserve Bank of Australia‘s latest decision to leave
the official cash rate on hold for another month.
What’s the bottom line? Well, with the Australian housing market worth $7.3 trillion it makes up a sizeable portion of the Australian economy. Of this market, Sydney and Melbourne make up 60% of the market share. So, price fluctuations in these cities have a considerable impact on what happens across the market nationally, which, in turn, affects the Australian economy and consumer confidence. Consequently, these markets influence RBA rate settings, and the outlook for economic growth.
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