Property News

HSBC's Paul Bloxham predicts house price boom

The Australian has reported that HSBC’s Paul bloxham has predicted a house price boom.

“Australia’s housing boom is just beginning,” Mr Bloxham said. “With a housing boom getting started, we think the RBA will be reluctant to cut rates further.”

He forecasts high single-digit growth in 2013, saying the housing market is very sensitive to low mortgage rates.

“House prices have risen by 9 per cent since their trough in May 2012 and are 5.5 per cent higher over the past year.

“Growth has accelerated recently, with prices up by a strong 3.7 per cent in the third quarter.”

Auction clearance rates are holding at levels that suggest a housing price boom is coming, he said.

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