“The Reserve Bank of Australia left the official cash rate at 1.50 per cent – for a record 19 consecutive months and it seems it won’t change soon”, said the HIA’s Principal Economist, Tim Reardon.
“As noted by the RBA Governor, the housing markets in Sydney and Melbourne have slowed. In fact house prices fell in the first quarter of 2018 in all capital cities, except Hobart.
“Sydney house prices are now 2.1 per cent lower than they were a year ago as a consequence of the supply of housing temporarily rising to meet demand.
“The decline in investor activity in the market is also a direct consequence of APRA intervention into the market in April 2017.
“The market is already cooling and this is not the time to expose the market to higher interest rates, or heavier taxes through changes to negative gearing”, concluded Mr Reardon.
Source: HIA