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A house is advertised for auction in the south-west Sydney suburb of Punchbowl.

"It seems that the rate reduction has staved off what looked like a bit of a decline and a crunch in response to affordability constraints."
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Nancy and brother stand next to the sold sign, after the sale of their parents' house in Punchbowl.

Productivity Commission chair Danielle Wood stands in the ABC Ultimo newsroom.

"The more you can borrow, the more you can kind of bid up the price of houses,"
she explained.

Peter Tulip, the chief economist at the Centre for Independent Studies, at his computer.

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A woman with long brown hair and glasses sits in front of a computer in an office looking at graphs.

Gerard Minack, economist and founder of Minack Advisors.

A for sale sign on a house on Bendigo St, in Collingwood, in inner Melbourne.

"So the supply- and demand-side factors mean that price growth has been more subdued and there's more supply to absorb existing demand."
An aerial photo of a new housing estate with empty blocks and several new houses being built.

"Well, the fact is, for every investor that sells, guess who buys? It used to be a tenant. Someone who didn't own a home buys a home."

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