snack, crackle & pop, page-13

Club-sharer
Good post ..
The recent house price growth and demand has been debt driven to a very large extent - when the banks were freely lending at the low interest rates and lower house prices.

So some prudent bank lending right now at the higher interest rates combined with higher house prices - should moderate the excessive demand.

We mustn't forget the average mortgage payment has increased by $320/week in Melbourne over the last 12 months alone !
That's less disposable income that flows back into the economy - it can't be good for the economy heading forward.

Also banks are very highly leveraged to the housing market - they have their necks on the line too .. and they want to see a healthy , "real" and sustainable economy ... it's about the big picture.