Forget about house prices for a minute and think about your job and future income. That's what Reserve Bank of Australia governor Philip Lowe has been consistently telling those Australians spooked by house price falls, through speeches, interviews and three-hour long testimonies.
The RBA insists that unlike in the early-mid 2000s, Australian home owners did not use the record house price surge from 2012 to 2016 to borrow and support their spending. So, the RBA argument goes, with house prices having fallen 14 per cent, peak to trough, in Sydney: why would prices start to sway the way people spend now?
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Matthew Cranston is the United States correspondent, based in Washington. He was previously the Economics correspondent and Property editor. Connect with Matthew on Twitter.
