Modelling from a Labor – aligned think tank, the McKell Institute, found house prices wouldn’t grow as strongly over 10 years but would not crash.
These are a lot of negative speculation about housing bubble and housing market is “fully-priced”. Commercial rates and unemployment are the internal factor that possibly affect but not a danger though. There is momentary oversupply of housing and they think that this is a threat because of the mining sector and house price is highly increasing. Despite and in spite of, housing market were supported of the immigration, investors and strong population growth. Low interest rate is one factor that contributes to higher house prices which hold at 1.75% as of this month. The market is quite strong and predicted that there won’t be much growth for the coming years. We are experiencing overestimated but not extreme condition, therefore, no crashing of housing values.