The Reserve Bank of Australia highlights the risks associated with falling housing prices in its biannual financial stability review, published today (April 12).
Prices in some areas of major Australian cities, such as Sydney and Melbourne, have fallen by 20% from their peak in the second half of 2017. At the moment, this is unlikely to create widespread negative housing equity because “most borrowers do not have high starting LVRs (loan-to-value ratios),” says the review.
However, the central
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