Capital Economics: ‘Strayan house prices to melt not crash

Monday, 23 May 2016

Via Fairfax:

House prices will fall in coming years, but a US-style collapse is unlikely, Capital Economics says.

On some metrics, Australia’s housing boom looks bigger than the one that preceded the bust in the US – where prices dived 30 per cent following the global financial crisis – as well as the booms in the UK and Canada, Australia economist Paul Dales writes.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.