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Record-low interest rates could further inflate the housing markets in Sydney and Melbourne. Paul Miller/AAPThe Reserve Bank cut interest rates to 2% on Tuesday hoping to stimulate business investment and household spending. The RBA’s decision was welcomed by Treasurer Joe Hockey, but there are concerns the record-low rate will further inflate the already heated housing markets in Sydney and Melbourne. The Economist magazine recently evaluated Australia’s housing market to be overvalued by more than 25% (along with Britain and Canada). Even accounting for our higher incomes, Australia’s house prices are now among the highest in the world. While there is sympathy for the difficulties faced by would-be first-time homebuyers, a strong housing market is often associated with jobs and revenue for States and Territories (the economies of both New South Wales and Victoria have strengthened significantly partly due to the housing sector). Rising house prices are also good news for many Australians – more than 60%