Somebody shoot me. From John Edwards of the RBA:
“House prices can’t increase indefinitely,” Mr Edwards said. “And people purchasing houses today on the expectation that they are going to increase indefinitely will be disappointed and possibly financially embarrassed by the outcome.
…“If we thought the [housing] problem was sufficiently permanent and critical for us, we could try doing what New Zealand’s done which is to impose upon banks loan-to-value ratios that might have the effect of, say, reducing the rate of growth of house prices,” Mr Edwards told a Committee for Economic Development of Australia event in Melbourne.
