Fed: RBA says housing boom appears to have stopped

AAP General News (Australia)
02-18-2005
Fed: RBA says housing boom appears to have stopped

Australia's central bank says the country's long-running housing boom appears to have stopped.

Reserve Bank of Australia governor IAN MACFARLANE says the boom appears to have been
followed by something which is reasonably flat.

But he says this doesn't doesn't represent a bust.

In his semi-annual parliamentary testimony Mr MACFARLANE says the chances of a housing
market bust is much lower now than if the boom had continued for another year.

Mr MACFARLANE also says he's very pleased house prices have finally begun to fall by
a small amount.

He's also pleased households are no longer borrowing at the extraordinary rate they were in 2003.

AAP RTV bt/sb/jo/gjr

KEYWORD: RBA HOUSING (CANBERRA)

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