The Australian residential property market is not the biggest threat to the country's stability, with a US-style housing crisis unlikely to emerge, according to an RBA official.
RBA financial stability department head Luci Ellis warned that it would be a mistake to anticipate a major threat to the country's economic growth will come from the property sector.
Ms Ellis admitted it is never possible to be totally confident about how the market is going to develop, reports the Sydney Morning Herald.
But residential property is considerably less of a threat that the commercial sector, she explained.
In a speech warning against jumping to the wrong conclusion when assessing potential threats to the Australian economy, Ms Ellis also criticised "simplistic" metrics for gauging the banking system's health.
Australian property analyst BIS Shrapnel recently suggested that the slight recent increase in housing prices could indicate that the market is on the path to recovery.
Posted by Craig Francis
