Australian house prices - a bit too hot in parts

Australian house prices - a bit too hot in parts. As the mining investment boom deflates, in order for Australia to rebalance its economy, a pick-up in demand for homes and house prices in response to lower interest rates, sending a signal to home builders to build more homes was essential. Fortunately, it's occurred. The RBA (belatedly in my view) got rates down, home buyers returned, home prices rose and we are now in the midst of a dwelling construction boom. The housing sector is doing its part! But it seems that there is nothing that gets Australians going more than what's happening with house prices. Are they in a bubble? Is negative gearing to blame? Or is it foreign buying? Will it burst? Should the Reserve Bank slow it down? Is housing a good investment? A looks at the state of play in the Australian residential property market. (VIEW LINK)