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house prices are currently falling, a rate rise will only exacerbate the overall fall of house prices and blow the top off the bubble. Alan's prediction that house prices will rise At a rate of 4% after 6-12mths is optimistic, at best. He would appear to be basing this information on what happened during the GFC. There is little to suggest that the housing bubble would not continue deflating, given the 2 speed economy and the fact that every sector outside of mining, is struggling.
flahman 8 months ago