RBA should put brakes on rates: REIA

RBA should put brakes on rates: REIA

28 May 2010 by Staff Reporter 0 comments

The Real Estate Institute of Australia (REIA) president David Airey has warned the RBA that any further rate rise next month will cripple the housing market.

“The slowdown in the housing market over the past month is a real concern for our economy,” Mr Airey said.

Since early April, we’ve seen the market change from buoyant to slow and depressed,” he said.

According to Mr Airey, the strength that was evident in the housing market in the first quarter of this year is now almost non-existent.

“Six rates rises in eight months is unnecessary and has overwhelmed the market while it was still in recovery,” Mr Airey said.

Latest figures from the Australian Bureau of Statistics show that the number of first home buyers, as a percentage of total owner occupied housing commitments, has decreased to 16.1 per cent in March 2010, compared to 18.1 per cent in February.

“This is the lowest for some five years, and compares to the long-run average of 20.1 per cent.”

"When the ABS figures were released earlier this month, I said that first home buyers were a dying breed.

“I think that the RBA need to look at a wider set of figures and statistics before they ramp up rates in the future, to avoid these extremes in market conditions and anxiety it causes borrowers,” he said.

 

The Real Estate Institute of Australia (REIA) president David Airey has warned the RBA that any further rate rise next month will cripple the housing market.

“The slowdown in the housing market over the past month is a real concern for our economy,” Mr Airey said.

Since early April, we’ve seen the market change from buoyant to slow and depressed,” he said.

According to Mr Airey, the strength that was evident in the housing market in the first quarter of this year is now almost non-existent.

“Six rates rises in eight months is unnecessary and has overwhelmed the market while it was still in recovery,” Mr Airey said.

Latest figures from the Australian Bureau of Statistics show that the number of first home buyers, as a percentage of total owner occupied housing commitments, has decreased to 16.1 per cent in March 2010, compared to 18.1 per cent in February.

“This is the lowest for some five years, and compares to the long-run average of 20.1 per cent.”

"When the ABS figures were released earlier this month, I said that first home buyers were a dying breed.

“I think that the RBA need to look at a wider set of figures and statistics before they ramp up rates in the future, to avoid these extremes in market conditions and anxiety it causes borrowers,” he said.

 

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
William Phillips on how agents can expand their database and grow their business

In this episode of Secrets of the Top 100 Agents, host Tim Neary is joined again by William Phillips to discuss the real estate database and...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
upcoming events
REB Awards
Sydney The Event Centre 12 Sep
REB Awards
Sydney The Event Centre 12 Sep
Melbourne The Event Centre 14 Oct
Brisbane The Event Centre 18 Dec
View all events
Do you have an industry update?