Sukkar is asked the same question, given Peter Dutton said the same thing this week and says:
Look, I think Clare has copped some unfair criticism, because I think it is… It would be quite devastating for a young first home-buyer who has owned a home for one or two or three years to suddenly go into negative equity, which is the consequence of what some of the suggestions have been.
What I said very clearly is – you absolutely want wages growing more quickly than house prices. There’s no doubt about it.
But you can have a situation where you have modest house price growth, but you still have wages growth that outpaces it. And what we need to see is a period where wages growth sustainably outpaces housing growth. That’s house price growth.
That’s the only way that you’re going to end up in a situation where it’s more affordable to own a home. Let’s not forget the GFC in 2008 where we saw in the United States significant drops in house prices, and the devastating consequences that it had on that economy. To be wishing that on our economy, I think, would in the end, hurt young Australians more than anybody
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