Warning house prices could soar by $100k

News.com.au - 18:59
The Greens have warned that house prices could soar by over $100,000 next year as both the major parties throw everything but the kitchen sink at first home buyers.

The Greens have warned that house prices could soar by over $100,000 next year as both the major parties throw everything but the kitchen sink at first home buyers.

Amid predictions that the policy changes could simply fuel inflation in the housing market, a new analysis has warned of projected increases.

It’s based on SQM economist Louis Christopher’s prediction that house prices will rise by 8 per cent this year under Labor’s recently announced policies, or 15 per cent under the Coalition.

“They’re both inflationary. You need to model this stuff up but for a finger-into-the-wind guess, you would see prices rise 8-15 per cent, 12 months after the policies were enacted,” Mr Christopher said.

MORE: Home loan trap taking years to escape

If he’s right, a typical house in Brisbane would increase by $72,000 this year under Labor, or by $135,000 under the Coalition.

In Sydney, there are predic...
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