There are so many factors that really affect the housing market. One factor is the interest rate in which the RBA has left the official rate at a historic low. The lower the interest rates, the greater boom in housing market and dwells the house prices increases.
According to a Chief Economist, Paul Bloxham, “prices are high, but not unusually high when compared with similar countries. As we have said many times before, Australia does not currently have a housing bubble.” We all know that Australian house prices increasing. Through this, it boosts but this is alarming to everyone because every time the house price increases, we consider as bubble market. In fact, this is unrealistic because we see the recovery in business confidence.