and here we go again, today the RBA increased their bond buying to keep rates low. This is an artificial adjustment since the money was printed out of no where. If it was left to the free market, no investor would buy Aussie bonds at 0% or near 0% interest. Rates would be at their true market value, and so would properties. Instead, the government is "helping out" home buyers by letting more and more people take cheap loans, but all this really does is push up home prices (record home price growth also reported this week) meaning the home buyer is still no better off.
The more they do this the harder it will be to ever correct the overblown prices, it's probably impossible to voluntarily correct it. My house has been on the market for a while, was offered 708k in December, 740k in early Feb, I now have an offer for 770k in March. Check the numbers for wage growth, anyone out there earning 10% more in the past 4 months? Does this sound like the government is helping home buyers?
And as usual, it's a good time to be 80IQ no qualifications real estate agent in Australia.
