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Monday, February 10 2014
The housing market is in the early stages of a solid cyclical upswing, buoyed by low interest rates, but it's not a bubble, ANZ Bank chief economist Warren Hogan says in a Committee for Economic Development of Australia report. "Our view is that prices remain largely explained by low interest rates, sharply improved affordability, the release of pent-up sales demand created over recent years and an unprecedented (and increasing) shortage of physical housing stock," Hogan writes. He says the majority of future price gains will be in Sydney, Perth and Melbourne, with investors driving the upturn in the market.   |