I would like to thank The Australian Institute of Building for the invitation to speak here today and the opportunity to discuss recent developments in the housing market.
Housing is important in our lives in many ways, including as a secure place to live, a key asset and an important vehicle for saving. Housing is also a source of employment for a lot of people, including for those in the business of developing, building and renovating, as well as for those who help us to trade and move between dwellings, and oversee the legalities, insurance and financing of housing-related transactions. Hardly surprising then that it’s a frequent topic of conversation, including among economists. And it is not surprising that central bankers pay it close attention, given that it plays an important role in the business cycle, in the transmission of monetary policy and, as we’ve seen in many advanced economies of late, in the health of the financial system.
My plan today is to add to this conversation, reviewing what’s been happening over the past year or two and discussing some of the factors affecting the outlook for the Australian housing market.
The Established Housing Market
Overall, the data over recent months suggest that demand in the established housing market is strengthening gradually, and this should help to underpin further moderate growth in dwelling construction.
This general strengthening has…. Read More