Category Archives: Housing

Financial Stability and Mortgage dynamics

My argument for a May rate cut by the RBA basically boils down to the observation that inflation is very low and that there’s no financial stability reason not to cut — plus the judgement that the very low pace … Continue reading

Posted in AUD, Banks, Housing, monetary policy, RBA, Uncategorized | 6 Comments

Underwater mortgages

The fact that Australian house prices are now back to 2016 levels (or below in some areas) means that there is a rising number of property transactions where the purchase price is now above the current valuation (or more importantly, … Continue reading

Posted in AUD, economics, Housing | 5 Comments

The problem with Aussie Housing

The RBA just released their semi-annual Financial Stability Review (FSR).  Predictability, the FSR plays down the risks from the maturity of Interest Only (IO) loans — however I think they are over-confident.  Let me explain.  In the five years prior … Continue reading

Posted in AUD, economics, Housing, RBA, Uncategorized | 4 Comments

Here comes the housing downturn?

It’s been ages since I blogged here — partly because the issues facing the Australian Economy haven’t changed much over the past year or so.   Inflation is stuck at a pace that is too low (at least relative to the … Continue reading

Posted in AUD, Housing, monetary policy, RBA | 9 Comments