Australian house prices are likely to keep surging with the nation's most powerful banker signalling he won't do anything to stop the market from overheating.
Capital city property values soared by a record 6.7 per cent during the June quarter, the biggest three-month jump on record since the Australian Bureau of Statistics began compiling data in 2003.
Canberra prices climbed by an even more dramatic 8.2 per cent as Sydney values rose by 8.1 per cent.
Despite the lockdowns, Sydney's real estate values have kept rising, with median house prices edging up by 1.9 per cent in August to $1.293million, CoreLogic data showed.
Australian house prices are likely to keep surging with the nation's most powerful banker signalling he won't do anything to stop the market from overheating. Capital city property values soared by a record 6.7 per cent during the June quarter (pictured is a house at Newport on Sydney's Northern Beaches)
The Reserve Bank of Australia has previously increased interest rates to stop the housing market from overheating.
Financial markets have been speculating the cash rate, now at a record low of 0.1 per cent, will increase in 2022 or 2023, instead of 2024.
But RBA governor Philip Lowe on Tuesday insisted the central bank would do nothing on monetary policy, as the Delta strain of Covid looked set to cause a steep plunge in economic activity.
'Finally, I would like to address the question of housing prices, as some analysts have suggested we might lift the cash rate to cool the property market,' he said.
'I want to be clear that this is not on our agenda.
'While it is true that higher interest rates would, all else equal, see lower housing prices, they would also mean fewer jobs and lower wages growth.
Financial markets have been speculating the cash rate, now at a record low of 0.1 per cent, will increase in 2022 or 2023, instead of 2024. But Reserve Bank governor Philip Lowe on Tuesday insisted the central bank would do nothing on monetary policy, as the Delta strain of Covid looked set to cause a steep plunge in economic activity
'This is a poor trade-off in the current circumstances.'
Renters are having a hard time too with Australia's national rental vacancy rate plunging to just 1.6 per cent in August, making it the tightest market since March 2011, SQM Research data revealed.
SQM Research managing director Louis Christopher said the exodus of people from
