The Real Estate Institute of Australia (REIA) has published a report on the so-called housing bubble that is said to exist in Australia.
This report rubbishes claims of a bubble in the Australian property market and explains why the speculation of its presence is misinformed.
"An analysis of the factors influencing Australia's house price movements and the lending practices of Australia's financial institutions suggests that a US-style housing bubble in Australia is unlikely," the report concludes.
It explains that four phases of house price growth have been identified and also states that the regulations in Australia mean that financial institutions behave more prudently than those in the US and avoid excessive risks.
Last month, Terry Ryder, founder of real estate advice site hotspotting.com.au, wrote in a piece for the Australian newspaper that a price bubble had been dreamed up.
He said the same for an affordability crisis and exceptional property price levels.
Posted by Steve Douglas
