There Is Some Really Bad News For Aussie Home Buyers
After releasing it's biennial survey, the Organisation for Economic Cooperation and Development (OECD) have seen a trend indicating that Australian house prices have increased by 250% since the 90s.
“House prices and household debt have reached unprecedented highs,” the report said.
“A continued rise of the market, fuelled by both investor and owner-occupier demand, may end in a significant downward correction that spreads to the rest of the economy.”
This 'downward correction' could mean a cut on household consumption, and eventually lead to defaults on morgages.
The authors of the report have stated that even though it looks like the market would cool, the big increase in Aussie house prices and income ratios is still an issue, meaning about house affordability for first-time buyers would be a major issue.