Pressure’s off for RBA with dwelling investment levels easing

first_imgReserve Bank of Australia Governor Philip Lowe is well pleased with housing credit growth easing in the second half of this year. Picture: AAP Image/James Ross.DWELLING investment was expected to be “at a high level” for the coming year, but nowhere near the extremes of a few years earlier, according to the Reserve Bank of Australia.The minutes of the latest RBA board meeting saw discussion over dwelling investment having fallen marginally in the September quarter with conditions easing in the established housing market too.“Dwelling investment had fallen over the preceding year in Queensland and Western Australia, but had remained at a high level in New South Wales and Victoria,” the RBA minutes said.“Residential building approvals had picked up in preceding months, but remained below the levels of a few years earlier. Together with data on the pipeline of work yet to be done, this suggested that dwelling investment would remain at a high level for the following year or so, but that it was not likely to add materially to GDP growth.”More from newsParks and wildlife the new lust-haves post coronavirus22 hours agoNoosa’s best beachfront penthouse is about to hit the market22 hours agoThe meeting, presided over by RBA Governor Philip Lowe said the most noticeable easing in the established housing market especially was in Sydney “where housing prices had declined in prior months and auction clearance rates had fallen”.“Housing price growth had also eased in Melbourne, but remained relatively strong, supported by high population growth. Housing prices in Perth and Brisbane had been little changed in preceding months.”RBA has been well pleased with the easing of housing credit growth too through the second half of the 2017 calendar year — mostly off major banks restraining interest-only lending.“Growth in household credit had slowed somewhat, but members agreed that household balance sheets still warranted careful monitoring.”What RBA’s watching come 2018 in eastern capital cities is the “considerable additional supply of apartments” scheduled to come on stream. The apartment were to be rolled out “over the next couple of years”. Follow Sophie Foster on Facebooklast_img

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