Insight (1995)

Bursting the Bubble (2008x20)

: 09, 2008

Will a slowing economy lower house prices in Australia? The Housing Industry Association says housing affordability is at a 24-year low. Yet economists are divided over whether Australia's troubled economy will work for or against those struggling to buy a home or maintain a mortgage. Economist Steven Keen has claimed Australia is heading for the worst recession since the Great Depression, and predicts housing prices will drop by over 40 per cent. The ANZ’s Saul Eslake warns this is a dangerous assumption, while economic journalist Ross Gittins believes we are in uncharted waters, with household debt at an all-time high. Home owners mortgaged to the hilt, economists, housing and construction representatives, government and opposition meet on Insight to discuss who could benefit from a big economic dip.