Economic News

Oliver also points to something other than interest rates. Alongside more rate hikes than expected and rising unemployment, he cites the structural change associated with the federal tax changes for property investors, according to reports of his revised forecast on 2 November.

The figures come from the Home Value Index released on 2 November, which covers the month of October.

A gross yield is a year's rent divided by the property's value, before any costs. It rises when rents climb faster than prices, or when prices fall.

Darwin values rose 0.6% in October and Hobart 0.5%. Every other capital fell, according to reports:

The November index, covering data to 31 October, shows combined regional dwelling values fell 0.7% in October and 2.0% over the quarter. That is a smaller retreat than the capitals, which fell 1.4% in the month and 4.5% over three months.

The key passage in the Statement's overview is short. "Housing prices in September were almost 5 per cent below their March peak," the RBA wrote, "reflecting higher interest rates and tax changes announced in the federal budget."

The RBA Board voted six to three on 3 November to raise the cash rate target by 25 basis points to 4.85%. Three members preferred to leave it at 4.60%.