RBA to shrink house prices to ‘make room’ for running out of fuel

Monday 23 March 2026

I do believe that Australia has finally been dealt a set of circumstances that will, certeris paribus, crash the property market.

As LVO noted yesterday, the property market has already turned.

Sydney and Melbourne auction clearance rates

Normally, this would send the RBA into a rate-cutting panic and frenzy. Not this time.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.