House price boom won’t rescue economy

The Australian’s economics correspondent, Patrick Commins, is holding out hope that the house price boom will engineer a economic recovery:

Australians are taking up new mortgages at the fastest pace in more than three years, encouraged by a sharp recovery in property prices and stoking hopes for a recovery in spending and housing construction in 2020…

“Stronger borrowing is lifting dwelling prices and means positive wealth effects may come back into play and support consumer spending,” [CBA economist Kristina Clifton] said…

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