It seems incredible given we’ve experienced an unprecedented economic slump, but house prices could be just beginning an extraordinary boom according to the Reserve Bank – and it’s because of interest rates at record lows. #abc730
“The RBA’s research shows that historically, a 1 per cent fall in the cash rate, if it’s temporary, will boost house prices by about 10 per cent.” – @danielleiwood, Grattan Institute CEO #abc730
“Our very strong immigration program has historically been supporting house price demand ... realistically we’re probably not going to see a return to anything like business as usual for immigration and population growth probably until the start of 2022.” – @danielleiwood #abc730
“We’re seeing very strong growth in lending among first home buyers. For the ones who haven’t lost their jobs and have had their incomes hold up, they’ve found it easier to save during the pandemic.” – @danielleiwood #abc730
"At the same time, that reduction in the cash rate very significantly increases their capacity to borrow. As those buyers return to the market, that's really where we see that upward price pressure over the next year." – @danielleiwood #abc730
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