PHOTO: 123RF Sure, sales activity has slowed, but that’s predominantly an issue for real estate agents and to be expected given the negative talk.
OPINION: You have to hand it to the Reserve Bank: they’ve done a formidable job in effectively managing our housing market, which just a couple of years ago was widely tipped as being susceptible to a “crash”.
Remember those predictions?
The bank’s work to manage the market started in 2013 with the introduction of loan-to-value ratio (LVR) restrictions to address the risks from rapid house price inflation and increasing household debt.
Its latest move, effective from January 1, has been to loosen up and let banks issue more new mortgages to owner-occupiers with deposits under 20 per cent and investors with under 30 per cent.
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