RBA warns a weakening housing market could have negative economic ramifications

The Reserve Bank of Australia (RBA) has warned over the upcoming housing market risks, in its quarterly statement of monetary policy (SoMP) published earlier on the day, The Australian reports.

Key Quotes from RBA:

“Outside Western Australia, the supply of housing has to date largely been absorbed by population growth”

“However, if growth in housing demand does not continue to keep pace with the scheduled large increases in supply, it would place downward pressure on housing prices and rents and increase the risk of off-the-plan apartment purchases failing to settle”