On balance no. In terms of restraint on the pace of house prices rises we have evidence of all banks now applying the old LVR rules (minimum 20% deposit for most owner-occupier buyers and 30% for investors, with one bank demanding a 40% deposit from investors. We also saw some stepping back from the market of a few buyers ahead of the summer holidays.
But we have also seen competition for market share between banks cause a one-year fixed mortgage rate of 2.29% to become available from 2.49% previously. We have also seen various surveys show surging business and consumer confidence, with a strong lift in business employment intentions likely to provide extra housing market support this year.
There is however growing pressure on the government to do something about the rapid increase in house prices (11.7% over the four months to December), and this resulted in the Finance Minister penning a letter to the Reserve Bank.