Finance & Fury Podcast

Welcome to Finance and Fury. This episode we’ll take a deeper look into the RBA property market models and how different inputs affect prices. Potential models that give the ability forecast future growth of the market based around assumptions – from a study by the RBA - A Model of the Australian Housing Market Not set in stone – it is a best guess model – the accuracy is built around the assumptions – But the RBA built an empirical model of the Australian housing market that quantifies interrelationships between the factors that drive property price growth Looking back over the past 30 years - the Australian housing prices have increased on average by 7¼ per cent per year – since the inflation-targeting period since the mid-90s - by around 7 per cent per year - However, these averages mask three distinct phases: During the 1980s, annual housing price inflation was high, at nearly 10 per cent on average, but so too was general price inflation. In real terms, housing price inflation during the 1980s was rela