PHOTO: The International Monetary Fund has issued an urgent warning about an Australian house price crash
- International Monetary Fund has issued warning about Australian house prices
- Washington group inked rising debt levels with ‘rising financial stability risks’
- IMF said Australian banks needed to be concerned about debt-to-income ratios
- Digital Finance Analytics principal Martin North forecasting 20 per cent drop
- Liverpool, Campbelltown south-west Sydney, Werribee in Melbourne ‘at risk’
- Aussie Home Loans founder John Symond said prices moved ‘too far, too fast’
House prices in outer suburbs of Sydney and Melbourne could crash by 20 per cent while apartment values may plunge by a third when the property boom inevitably ends, finance experts have warned.
Banking and mortgage industry veterans are worried about unsustainable debt levels after the International Monetary Fund issued an urgent warning that an Australian property price crash could destabilise the country.
Even John Symond, the founder of Aussie Home Loans, said he feared prices had moved ‘too far, too fast’ and were ‘insane’.
Record-low interest rates and new working-from-home arrangements last month saw house prices hit new peaks in 69 of Australia’s 78 property sub-markets based on a grouping of suburbs and towns.
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