Market in recovery not bubble: REIA

Recent house price rises are not indicative of an Australia-wide price bubble, according to president of the Real Estate Institute of Australia, Peter Bushby.

"It's important to distinguish between a recovering housing market and an overheated market which is a precursor to a bubble," Bushby told The Herald Sun.

"Yes, some markets are performing well but this growth is not by any means Australia-wide.

"Hot spots like inner Sydney and Melbourne tell one type of story but try asking someone in Hobart if there's a property bubble -- they'd laugh you out of the room."

The comments come as those with inside access to the Reserve Bank of Australia suggest it’s nervous about stimulating a price bubble.

Last week Residex’s John Edwards said a price bubble is unlikely despite Sydney’s strong quarterly capital growth.

And Terry Ryder said Sydney's property bubble hysteria is unfounded.