RBA Sounds Alarm as Housing Market Falters Under War Pressure

The Reserve Bank of Australia (RBA) has expressed concerns over the impact of the war in the Middle East on the country's housing market. In a recent speech, RBA governor Michele Bullock stated that the property market has been weaker than expected since the conflict began.

The median price of a home in Australia increased by only $6,000 between February and June, with annual growth dropping from 9.1% to 5.8%, according to the Home Price Index.

Price declines have been concentrated in Sydney and Melbourne markets, where prices were down 0.5% and 0.4% respectively in June. Despite this, Bullock emphasized that the RBA is confident households can weather the economic storm.