Australia facing most serious housing market crash in 75 years: Christopher Joye

Market commentator Christopher Joye says Australia could be facing its most serious housing crash in 75 years.

He says banks have a commercial incentive to instigate high credit growth.

“I do not believe that the market characteristics are currently bubble-like, but they could quickly become so,” Joye wrote in the Australian Financial Review.

He says there could be a massive market downturn unless macro-prudential tools and higher rates are implemented.

He says Sydney’s high pace of house price growth is concerning.

“Very strong capital gains would start to put the Australian housing market into serious bubble territory,” he wrote.

He says this would prompt the most serious housing crash in 75 years.