Australia may be on cusp of much-needed boost in housing supply
Reserve Bank Deputy Governor, Philip Lowe, disagrees with yesterday's warning from Macquarie Bank that house prices are set to slump 7.5% in value, as he believes that the supply of apartments significantly outstrips demands. Lowe said today that, "It's too early to be definitive but I think we're on the cusp of seeing the supply response finally kick in, moderating [house] price growth". Lowe thinks that the increase in housing supply will finally slow the rate of house prices growth. 

Reserve Bank deputy governor Philip Lowe says Australia may finally be on the cusp of a much-needed increase in housing supply that will finally slow the rate of house price growth.

But he disagrees with a warning from Macquarie Bank that house prices are set to slump 7.5 per cent in value from March next year as the supply of apartments significantly outstrips demand.

RBA deputy governor Philip Lowe says a supply increase may be about to moderate house prices. Credit: Graham Tidy

"It's too early to be definitive but I think we're on the cusp of seeing the supply response finally kick in, moderating [house] price growth," Dr Lowe said on Tuesday.