The RBA have said in their May meeting what others have been thinking for a little while…
I have just read the minutes from the RBA meeting minutes… but they confirm a few things that are really interesting about our housing market;
1. Strong growth in housing investment (Dwelling approvals) despite the tapering off of the rapid growth experienced in the December quarter of 2013 (has anyone heard of the term “Granny flat?)
2. The housing market has slowed in April and May – softening clearance rates and home loan approvals slowing to a gradual pace
3. The demand for new houses remains strong
4. Economic activity has increased; inflation has remained consistent, unemployment is down, export growth has increased but the tendency is that it will decline over the next two quarters, and businesses are starting to recover.
They did indicate that the growth of the nation could slow due to export growth declining, tightening measures (Abbott’s Taxes) on the Australian public.
Does anyone else think this is consistent with what’s happening in the market??