Property prices will be pushed even higher unless we build more houses, according to the Reserve Bank of Australia.
An undersupply of housing that isn’t meeting the growing demands of the population is to blame.
Dr Phillip Lowe, assistant governor, economics, at the RBA said it was vital Australia increases the supply of new housing.
“If this does not happen, further adjustment in housing prices and rents is likely to occur to balance supply and demand,” he told the Urban Development Institute of Australia National Congress on Wednesday.
Property prices rose by more than 10 per cent in 2009 and many economists believe prices will continue to climb this year, despite rising interest rates.
Source: ninemsn.com.au
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