Real Estate Sector Overheating

So says Gail Kelly, Chief Executive of Westpac. She is particularly concerned about what is happening in Melbourne, where prices have jumped 19% over the last year. She predicted that the Reserve Bank would raise interest rates again. The RBA prefers managed growth and wants to stop the development of housing or other bubbles.
In the meantime funding costs, that surged during the Global Financial Crisis, remain above the RBA adjustments and will not return to pre-crisis levels. Westpac is making sure that their lending rates are priced to reflect this.