Roubini on Australia’s Death-defying House Prices

In Australia, amazingly, they’re [Property Prices] going up. Yesterday the ABS reported an astonishing 4.2 per cent rise in the June quarter. We happily joined in the house price bubble between 2003 and 2007, and we’re still bubbling away.

Roubini explained that he’s relatively optimistic about Australia because of the rise in commodity prices, the fact government finances were in good shape, the better performance of the financial system, and above all the strength of house prices – which he attributed to the fact that Australians can’t just walk away from their mortgages as Americans can (in the US they are “non-recourse loans” and home-owners are just popping the keys in the mail to bank and heading for the local trailer park).

via Business Spectator – News – Dinner with Dr Doom – Alan Kohler.

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