The current spike is housing prices is driven by many factors including a shortage in supply, the slowness of the planning system, the consistent piling on of new solutions to the issues of the world onto the price of new homes, record low interest rates, first homes owner grants, stamp duty concessions for first home buyers, the Homebuilder grants, returning ex-pat families and more.  The RBA were talking about keeping interest rates low for three years.  They still are, but the language has changed.  The RBA is watching the CPI and it is watching housing prices. Further, APRA will be keen to use their leverage with the banks to limit the availability of credit for borrowers if they feel we are heading into a housing prices bubble.  This complex issue demands serious analysis and the full and urgent attention of the NSW planning system.

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