US-style collapse unlikely, but house prices will still fall

A US-style collapse in house prices in Australia is unlikely when lending conditions during the good times have not been as loose as in America and Australian banks are better placed to cope with the bad times. Even so, we are more worried than most and suspect that, after hardly rising at all over the next couple of years, house prices in Australia will fall outright in both 2019 and 2020.

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