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1 Mar 2013
Forex Flash: Improvement in Aus house prices buys RBA some time - NAB
Today's Rismark house prices climbed by 0.3% in February, up 1.3% y/y. As explained by NAB senior economist David deGaris, "Melbourne led the charge in Feb among the larger capitals (+1.5%), with Sydney steady (+0.1%), while Darwin (+2.3%) and Canberra (+1.9%) saw increased momentum."
Mr. De Garis adds: "With house prices showing some momentum through the latter part of last year and into this quarter, it’s become self evident that lower mortgage interest rates from monetary easing and some improvement in affordability from previous price easing is driving renewed interest in housing. This is one area where the RBA is finally getting some traction and buying the RBA more time to sit on their hands at next week’s Board meeting."
Mr. De Garis adds: "With house prices showing some momentum through the latter part of last year and into this quarter, it’s become self evident that lower mortgage interest rates from monetary easing and some improvement in affordability from previous price easing is driving renewed interest in housing. This is one area where the RBA is finally getting some traction and buying the RBA more time to sit on their hands at next week’s Board meeting."