Australian housing market sturdy and there is no bubble: CommBank’s Michael Blythe

The Australian housing market has already enduring the ultimate test and is sturdy enough to sustain the current market pressures, says Commonwealth Bank chief economist Michael Blythe.

He says the Australian housing market went through “ultimate test” a few years ago in the wake of GFC and “came out the other side in relatively good shape”.

“That’s probably the best indication that we’ve not got a genuine bubble as we know them from historical experience.

“As an economist, I have to believe in the laws of supply and demand, and supply and demand in the Australian housing market is in a position to at least keep a floor under prices,” Blythe said as part of a panel discussion at the recent Australian Banking and Finance Mortgage Innovation Forum in Sydney 

According to Blythe, talk of housing bubbles is nothing new and particularly comes up at times when the market is under pressure.

He says talk of an Australian housing bubble dates back to 2004.

“It’s been a persistent theme and a persistent question we get from clients, particularly from those offshore,” he said.

 

 

 

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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