Will FHB’s drive another round of house price inflation?

Friday, 8 September 2017

Thanks to state governments, FHBs are again facing an uphill battle to find cheaper property as they are shoe-horned into bidding up prices by grants.

Today’s housing finance figures show clearly that as investors dive on macroprudential, FHBs are rising. JPM has a nice chart:

So, is this a one-to-one swap and will FHBs be their own worst enemy by driving up prices again?

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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.