Business
House prices are not a bubble, says Chris Richardson – The Australian Financial Review
Rocketing house prices are not in a bubble but the natural result of historically low interest rates, the veteran economist says….
The consequence of this would be continued strength in house prices.
Every one percentage point fall in mortgage rates adds 8 per cent to measures of fair value for house prices, Mr Richardson said. Like it or not, what house prices have done makes sense.
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