Opinion: In defence of mortgage broking
February 26, 2016
Sydney house prices rise in February, Hobart the best performer
March 1, 2016

“I was hopelessly wrong on house prices. Ask me how.” It’s about time I answered that question, isn’t it?

In a nutshell, I got the cause of the Aussie House Price Bubble right, but the direction of the cause wrong. The fundamental determinant of house prices is mortgage debt. I thought that — as had happened in Japan after its bubble economy burst — the Australian economy would start to de-lever after the GFC, and that this process would take house prices down with it. This is what happened in the USA and most of the First World. READ More: