The wagons begin to circle as house price falls accelerate. ME Bank chief executive Jamie McPhee says no crash is coming, via AFR:
“I don’t believe in the doomsday scenarios where house prices will fall up to 40 per cent,” said the boss of the industry fund-owned bank. “But there was some exuberance in house prices and I do think they will come off for the next year or two to the same degree and that’s not necessarily a bad thing.”
A round of out-of-cycle rate rises by the majors following rises by smaller banks including ME threatened to place further pressure on house prices, however Mr McPhee said that conditions are unlikely to deteriorate.
