Housing Emerges as Australia’s Biggest Economic Challenge
Mortgage inquiries fell 14% in June as higher rates and tax changes cooled demand and dragged on consumer spending, Commonwealth Bank said.
- On Tuesday, RBA Governor Michele Bullock said housing is a 'litmus test' for inflation, noting the board has seen the market 'slow more than we were expecting' as financial conditions tighten.
- Rising borrowing costs and a government overhaul of investor tax breaks have shaken confidence across Australia, reversing policy easing that previously fueled record home prices.
- Home prices in Sydney and Melbourne are down nearly 5% so far this year, while Equifax data shows mortgage inquiry levels dropped 14% in June from a year earlier.
- Myer shares plunged 10% on Monday after the retailer warned of 'a weaker housing market,' while New South Wales cut stamp-duty forecasts by A$5.3 billion over four years.
- Commonwealth Bank forecasts economic growth will slow to 1.5 per cent by late 2026, as business owners like Jason Zhang report clients are shelving projects and bracing for a long haul.
26 Articles
26 Articles
The Border Watch
Housing emerges as Australia's biggest economic challenge
Australia’s economic growth is expected to slow as lower house price growth weighs on consumer spending and broader economic activity, with CommBank economists saying housing is now expected to be a bigger drag on the economy than higher oil prices. Speaking on the latest episode of the CommBank View: Economics & Markets podcast, CommBank Head of Australian Economics Belinda Allen said the shape of Australia’s slowdown had changed over recent mo…
Star Community
Housing emerges as Australia’s biggest economic challenge
Australia’s economic growth is expected to slow as lower house price growth weighs on consumer spending and broader economic activity, with CommBank economists saying housing is now expected to be a bigger drag on the economy than higher oil prices. Speaking on the latest episode of the CommBank View: Economics & Markets podcast, CommBank Head of Australian Economics Belinda Allen said the shape of Australia’s slowdown had changed over recent mo…
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