Reserve Bank Governor Philip Lowe says while historically low interest rates are pushing house prices higher, there are a range of factors currently coalescing to stymie the growth.
Dr Lowe cited the lowest population growth in more than 100 years, a spike in supply through higher construction, and historic prices as easing recent growth.
“I can’t forecast when that actually happens,” he said.
But lending standards were not currently a major concern for the central bank, and loosened practices which caused concern in the past were not yet being repeated.
Though the central bank governor noted he was keeping a close eye on growth in credit lending, and double-digit credit growth running well ahead of income growth would be a red flag.
“We’re not at the point that those restrictions are needed, but we could see that point emerging within the next year. Time will tell.”