Australia home prices rise
Australian home prices rose for a 10th straight month in October as record-low borrowing costs kept demand hot in Melbourne and Sydney, one reason why further cuts in official rates are considered unlikely in the near term.
The Reserve Bank of Australia (RBA) holds its monthly policy meeting and markets are pricing in a miniscule chance of an easing after cuts in August and May.
Sydney and Melbourne remained the hot spots with annual growth at 10.6 percent and 9.1 percent respectively. Growth was more modest elsewhere, with prices actually falling in Perth and Darwin.
“With ongoing strong value growth and high clearance rates in Sydney and Melbourne, as well debate around affordability gathering some momentum, there is likely to be further caution by the Reserve Bank around future rate cuts,” said CoreLogic research director Tim Lawless.