What if Australian property prices are still falling?

Martin North and John Adams have challenged the notion that Australian dwelling values are rising strongly, claiming that dwelling values across three quarters of suburbs fell in value over July to October, according to Realestate.com.au data:

This, they claim, challenges the narrative of a strong property rebound and represents a “pattern of unusual and fishy behaviour” whereby “the establishment has sought to kill the counter narrative that the market is falling”.

C’mon guys. Where was the same energy when these same indices were reporting massive and steep price falls?

Are we seriously suggesting that both CoreLogic:

And Domain:

Are manipulating the house price data to paint a rosy picture?

And is the rebound in both auction clearance rates:

And finance commitments:

Both fake?

The only conspiracy here is that Australia’s policy makers and public institutions have conspired to pump-up the market. Blame them.

In any event, we’ll get confirmation when the ABS releases its price data for the September quarter on 10 December.

Leith van Onselen

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

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