Via the AFR:
Mr White said that, while he thought growth in Australia’s house prices would remain steady, he shared some concerns over the macroeconomic prospects.
“Before you take a view on where houses prices will go in 2017, you must take a view on interest rates and the AAA rating,” Mr White said. “The only element that concerns me is the potential for a downgrading of Australia’s AAA credit rating.”
He said a downgrade would make some people a little more nervous on the cost of borrowing with the debt-to-income of Australian households one of the highest in the world.
