Gee, no sooner has a housing recovery been confirmed, then the loud voices go straight to assuming we have a looming property bubble on our hands!
The voices seem to range from those who have no experience or qualifications to speak on the this sector through to those who should know a lot better.
As discussed last week, the national housing market is not in boom conditions.
For most of Australia’s capital cities, there are still elevated amounts of stock on the market and residential property prices are largely just experiencing a modest recovery as in the case of Melbourne, Brisbane and Adelaide or no recovery at all as in the case of Canberra and Hobart.
It is just Sydney, Perth and Darwin that have been recording more rapid price rises.
Now as discussed last week, if we were to see national housing prices sustaining annualised increases of 7%+ for a considerable period then that is something to watch for.
However, it just simply isn’t happening yet.
There is no doubt in my mind that interest rates are helping the recovery along and there is also no doubt in my mind that the RBA will look at the national result rather than just what is happening in the Sydney housing market.
The latest SQM Research Asking Price Index
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