Record low interest rates will almost certainly drive up property prices. But they will also drive down unemployment and boost investment generally.
Combined, APRA and the Reserve Bank are about to give households on $150,000 up to $120,000 more borrowing power.
Policies proposed for the federal election risk making a bad situation worse, says UNSW Business School's Jonathan Reeves.
Prices are off, but from unprecedented highs. It could be a one-time adjustment.
The Reserve Bank is worried that a further tightening of lending standards could take the air out of the housing bubble very quickly. Here's the way it could happen.
The Australian housing market is now in a shallow decline, but the issue of interest only mortagages could still send it off a cliff.
Widespread speculation that other banks will follow Westpac’s interest rate rise is already having a dampening effect on house prices, says UNSW's Nigel Stapledon.