SYDNEY: Australian home prices raced at the fastest clip in almost two decades in February and job advertisements skyrocketed, data showed on Monday, as the economy rapidly emerged from its once-in-a-generation recession.
Separate data out on Monday showed new mortgage loans climbed 10.5% to a record high in January with the value of loans commitments to owner-occupiers 52.3% higher than the previous January.
The startling figures would be welcomed by the country’s central bank which has slashed its cash rate to a record low 0.1% and launched an unprecedented bond buying programme to keep borrowing costs low.
It has also promised to keep policy at the current accommodative levels until inflation is within its 2-3% target band, a goal that has remained elusive for years.
While Monday’s strong figures paint a rosy picture of Australia’s A$2 trillion ($1.6 trillion) economy, they are unlikely to change the minds of top policymakers about winding back some of the monetary stimulus, economists said.
The Reserve Bank of Australia (RBA), in fact, boosted the size of its daily quantitative easing programme, by announcing a larger-than-usual A$4 billion worth of bond purchase on Monday.
The move comes just a day ahead of its monthly board meeting where it is likely to leave rates at 0.1%, though its post-meeting statement would be closely scrutinised for any commentary on soaring home prices, rising bond yields and an appreciating currency.
The current quarter ending in March is likely to be solid too.
Monday’s figures from Australia and New Zealand Banking Group showed total job ads grew 7.2% in February from January, when they rose a revised 2.6%. At 174,010, ads were at their highest level since October 2018.
The housing sector, which is a major employer, is in-part driving the current economic upswing.
Monday’s data from property consultant CoreLogic showed national home prices rose 2.1% in February, from January, the fastest increase since August 2003. Prices across the major capitals rose 2% in January from the previous month, to be up 2.6% on the year.