Recent house price rises are not indicative of an Australia-wide price bubble, according to president of the Real Estate Institute of Australia, Peter Bushby.
“It’s important to distinguish between a recovering housing market and an overheated market which is a precursor to a bubble,” Bushby told The Herald Sun.
“Yes, some markets are performing well but this growth is not by any means Australia-wide.
“Hot spots like inner Sydney and Melbourne tell one type of story but try asking someone in Hobart if there’s a property bubble — they’d laugh you out of the room.”
The comments come as those with inside access to the Reserve Bank of Australia suggest it’s nervous about stimulating a price bubble.
Last week Residex’s John Edwards said a price bubble is unlikely despite Sydney’s strong quarterly capital growth.