On the contrary, CoreLogic says we can be cautiously optimistic about the strength of our property market.
“Many households have accrued strong savings buffers through the low interest rate period, and labour markets remain extremely tight” writes Eliza Owen, Head of Residential Research with CoreLogic.
“Housing market conditions are turning a corner amid low stock levels, rising demand from overseas migration, and consumer sentiment shifting higher as we approach what may be the end of the rate-tightening cycle.”
So what’s got the IMF so spooked?
Near record high levels of household debt could put Aussie mortgage holders in a precarious position should unemployment spike or rate rises continue unchecked.
Thankfully for mortgage holders, employment rates remain strong and most economists believe we’re near the end of the rate rises.
“Ultimately, the IMF reporting is important,” writes Ms Owen. “It highlights key vulnerabilities in housing markets that exacerbate the risk associated with a surge in unemployment. But for now, there is room for cautious optimism about the Australian housing market.”
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