Australian house price values unlikely to drop: RBA

By Phillip Tarrant 27 June 2012 | 1 minute read

Australian house prices won’t plunge, a senior Reserve Bank of Australia (RBA) has said.

According to a report from AAP, RBA assistant governor (financial markets) Guy Debelle said a sharp drop in house prices in parts of Europe doesn’t concern him.

Talking to a mortgage and finance industry lunch in Adelaide, Mr Debelle said he was comfortable with how Australians were managing their debt levels, and that there wasn’t an oversupply of houses, AAP reported.

Europe did cause him some angst, however.

“I think the day of reckoning is going to happen in Europe ... but nobody knows how it will play out,” he said, according to AAP.

“It is in the hands of Europe's leaders.”

Dr Debelle also told the audience that housing credit growth in Australia was rising at the same rate as household income, AAP continued, and that the biggest issue for banks in the next year was getting used to mid single-digit lending growth.

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About the author

Phillip Tarrant

Phillip Tarrant

Phillip Tarrant is executive editor – Real Estate at Momentum Media. He is also an investor with a large property portfolio.

He leads the content strategy and corporate growth for a range of market and business intelligence platforms at Momentum Media, including Smart Property Investment – the authoritative voice for Australia’s property investment community.

As head of the Smart Property Investment Podcast Network, he also steers the largest network of property podcasts in Australia, which collectively generates nearly 2 million downloads every year.

There are over 2.6 million investment properties in Australia, with over 2.1 million Australians (or around 8 per cent of all Australians) owning one or more investment properties. A vibrant and critical sector for... Read more



Australian house price values unlikely to drop: RBA
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