No housing bubble: BT Financial
Australia is not in the midst of a housing bubble, according to BT Financial.
Speaking at a mortgage industry conference hosted by brokerage group Vow financial in Queensland last week, BT Financial chief economist Chris Caton said talk of a housing bubble is simply “untrue”.
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“The property story in Australia post the GFC is three chapters long. We saw prices fall early last year (although nowhere near the 40 per cent some doomsayers were predicting) – the first chapter – and then recover sharply – the second chapter,” Mr Caton said.
“If these price rises had continued then a bubble was a possible outcome; but interest rate rises have taken the heat out of the market – the third chapter.”
Caton said analysts who compared the Australian property market with overseas markets to suggest it was over-priced failed to appreciate the differences in the local market.
“Our demographics, our mortgage structure, the supply situation, all combine to make our market different,” he said.