The housing bubble Australia

home-imgA US-based researcher’s predictions that we will witness up to 50 per cent price drops across Australia are “outrageous” and “not going to happen”, according to leading economists.

In a 60 Minutes episode on Sunday, Jonathan Tepper, founder of macroeconomic research group Variant Perception, predicted a property market crash of 30 per cent to 50 per cent.

HSBC chief economist Paul Bloxham does not believe Australia has a housing bubble, saying high prices are “explained by the fundamentals of supply and demand”.

“Most of the loans are held by upper income earners and the housing debt is fairly well allocated,” Mr Bloxham said