![]() "Yep, the last two years, it's been on fire," he said of Sydney's market. ![]() ![]() He said recent growth rates in Sydney and Melbourne were not sustainable and he would be worried if double-digit growth continued for another two years - though he said this was unlikely. So that gives them confidence to go and borrow," Mr Symond said in an interview with Fairfax Media. "I've been involved in housing and finance now since 1970, over 40 years, and I've never ever seen the market where interest rates are so low, and the belief of consumers is that these rates are going to stay low for quite a while. Mr Stevens' comments suggest the RBA is unlikely to move the cash rate from its record low of 2.5 per cent, analysts said, and they are likely to further fuel debate about Australia's red-hot property market.įigures from RP Data this week showed capital city prices posted their biggest rise since 2007 during the three months to August, and ANZ chairman David Gonski on Tuesday said the property the market would eventually experience a correction.Īussie Home Loans founder John Symond told Fairfax Media on Wednesday that record low interest rates were "the biggest single reason" for the nation's housing boom, but he did not expect the recent price growth to continue. "It is stating the obvious that at present, while we may desire to see a faster reduction in the rate of unemployment, further inflating an already elevated level of housing prices seems an unwise route to try to achieve that," Mr Stevens said.ĭespite assurances from the country's big banks and a range of economists that current house prices and levels of household debt are sustainable, the persistent growth in house prices has sparked a fresh debate about the risks of a bubble. All My Patients Have Tales is Dr Wells second book recalling his life as a veterinarian. However, Mr Stevens said that inflating the housing market would not address the economy's problems. The economy's weakness was underlined by the unemployment rate jumping to a 12-year high last month. Mr Stevens highlighted the dilemma for the Reserve Bank, and other central banks, between balancing a need to stimulate the economy and create jobs with a desire for stability.
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