Calls to curb lending regulation
Regulation to stall investment lending is unnecessary and could have disastrous consequences on regional growth, according to Mortgage Choice.
The company's CEO, Michael Russell, said slowdown in housing prices shows that the market is adjusting itself and does not need regulatory intervention.
He said the unintended consequence would be sluggish growth in areas outside of metropolitan centres and an increase in unemployment.
"As I have touched on recently, any regulatory interference to cool down dwelling price growth is short-sighted and could well have a devastating impact on the states and territories outside of Melbourne and Sydney where dwelling price growth can hardly resemble a bubble."
"While RP data found that dwelling values were up one per cent last month, the annual growth rate over the 12 months to October has now slowed to 8.9 per cent from an earlier peak of 11.5 per cent in April of this year.
"The diverse performance of our housing market was again on show last month with only Brisbane, Melbourne and Sydney recording positive growth.
"On a quarterly basis, dwelling prices are up 2.2 per cent to October, with only four states and territories recording positive growth, highlighting again why any broad based intervention would be totally inappropriate," he said.
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