Trade tension and home economics

Our terms of trade is falling, and your house value all depends on how the RBA reacts.

PORTFOLIO POINT: Australia’s housing market could fall further, depending on how the Reserve Bank responds to our declining terms of trade. Decisive action could revive capital city prices.

Australia’s terms of trade ratio is falling and, while that may not mean much to the average property owner, there are major repercussions for the national housing market.

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