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.
– See more at: http://www.theaustralian.com.au/business/property/hsbcs-paul-bloxham-predicts-house-price-boom/story-fn9656lz-1226734677731#sthash.xJMaWOQn.dpuf