Economics
World’s Most Housing-Exposed Economy Faces Ultimate Stress Test
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Australia’s A$7.1 trillion ($5.2 trillion) housing market is facing the ultimate stress test -- the first recession in almost three decades -- and passing with flying colors for now.
Economists had predicted property prices would tumble 10% or more as Covid-19 swept Australia; now, they’re scrambling to reverse those forecasts to gains of 5-15% in the next couple of years. Policy makers have switched from worrying about plunging prices to being on guard for excessive exuberance.