Mortgage Choice boss says housing fundamentals strong despite IMF downgrade
Australia’s housing market remains sound and will rebound once consumer confidence picks up, according to Mortgage Choice CEO Michael Russell.
“Housing prices are presently in the midst of a mild correction, but I would not support the view they are expected to dip sharply in the next six months,” Russell tells Property Observer.
“Essentially our strong domestic economy will continue to underpin housing prices in the short to medium term.”
Russell’s comments come just a few days after the IMF’s downgrade to global growth. Most economists and market commentators say Australia is well-placed to respond to any financial market crisis in Europe or the US.
According to Russell the “key mitigants” underpinning the Australian economy are: “positive population growth, relatively low and stable interest rates, strong employment numbers, tight rental vacancy rates and a much-publicised pent-up demand for both owner occupied and investment housing across the country”.
“While patchy, this pent-up demand is nevertheless substantial and is only being restrained as a consequence of fallen consumer confidence levels. All it would take is for an uptick in consumer confidence and I'm certain the overall demand for housing would increase,” he says.
