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Property expert 'dismisses price bubble'

An Australian property expert has dismissed the notion of a price bubble.

There has been much speculation as to whether Australia is to experience a property bubble.

For the past three years there has been talk of such an idea, with newspapers keen to report on buying booms and their potential long-term impacts.

Property expert Terry Ryder wrote in Property Observer this week that the idea of housing bubbles has become a sensational issue, however there has been little proof that this will be the case.

He said: "For there to be a bubble fit to burst, there needs to be a major decline in affordability."

Mr Ryder explained that there has in fact been the opposite in Australia, as for the past eight quarters there have been consecutive improvements in affordability, with prices falling on average and multiple interest rate decreases introduced.

With a slight rise in wages experienced over the past year it appears that house prices have not increased at the same rate, meaning the bubble hysteria is non-existent, he claimed.

<p $$hash="6797-0"><span $$hash="6861-0">Posted by Craig Francis

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