Banks, rules to blame for house prices

Original article by Michael Bleby, Su-Lin Tan
The Australian Financial Review – Page: 5 : 1-Feb-19

Chris Richardson of Deloitte Access Economics claims that both the banks and regulators are to blame for the current decline in house prices. He says that regulators were too slow to realise that record low interest rates were causing the housing market to overheat, while the banks suddenly went from being too generous with their credit to being too stingy. Figures released by the Reserve Bank on 31 January show that lending to owner-occupier borrowers grew by just 6.5 per cent in 2018, the weakest annual rate since 2014.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC

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