CHART OF THE DAY: Australian House Prices Look Set To Rise Further

You’d expect a pretty solid correlation between auction clearance rates and house prices.

It’s Economics 101 – supply and demand.

So even though the RBA has decided it’s time to offload its Kirribilli Mansion, today’s chart of the Day from the ANZ shows that the rate of growth seems likely to accelerate further as high as 15 or 16% year on year.

Homeowners will be happy and the ANZ highlights the RBA won’t be too concerned either because in the recent Statement on Monetary Policy, thE RBA noted home price rises in the past year or so had been, “broadly consistent with the historical relationship between interest rates and prices.”

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