The RBA has starkly highlighted a dramatic drop in property sales turnover as a key occurrence when it comes to recent economic structural change.
“In the early 2000s, when the property boom was in full swing and investors were busy buying properties to rent out, around one in 12 dwellings in Australia was changing hands each year,” RBA deputy governor Philip Lowe said.
“Today, the rate of turnover is only about half of this, with around one in 25 dwellings changing hands last year.”
Lowe noted to an AiGroup gathering the lower rate of turnover had contributed to weak employment growth in the real estate sector over recent years.
It had followed “many years of strong growth”.
The data indicated turnover rate was back to 1991 levels.
He suggested it was a consequence of the economy going through an adjustment in household borrowing and spending behaviour.
The RBA has talked frequently about this issue over recent years, and the flow-on effects are evident in various parts of the economy.