Tuesday, October 30, 2018

Housing correction a reality but no crash likely, says CBA chief economist Michael Blythe

Commonwealth Bank chief economist Michael Blythe has pushed back against warnings that Australia is facing a crash in housing prices. 

However, Michael Blythe says a correction is underway and says that some highly-leveraged households might be exposed by rising interest rates, even though many borrowers are more than 30 payments ahead. 

The Commonwealth Bank is Australia's biggest home lender and like other banks will be impacted by tighter lending standards from the Australian Prudential Regulation Authority.

Listen to my interview with Michael Blythe here

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