Interest rate cuts should reduce mortgage repayments but Sydney’s runaway price growth has more than outweighed the benefits of those cuts
The latest housing price figures released this week by the Bureau of Statistics show that Sydney house prices continue to greatly outpace the rest of the nation. So drastically have house prices risen in the harbour city over the past five and half years since the Reserve Bank began cutting interest rates that the affordability problem is now so bad that it almost appears impossible to solve.
A few years ago I was offered work in Sydney, which would have necessitated my moving from Canberra. While the work was attractive I recall rejecting the offer without much thought. Aside from my wife already having a great job, and our kids being well settled in Canberra, moving was never really on the cards because we knew buying a house equivalent to what we owned in Canberra was well beyond our means.