There may be a correction in house prices & slowdown in the property market. But it doesn’t mean the bubble is bursting.

• The author contends that the correction won’t last – any slowdown will lead to a slump in house building, worsening the housing crisis.

• House prices have fallen but the level is still very high – it’ll take more than one price fall to restore some modicum of affordability & fix the crisis.

• Moreover, there’s evidence of fewer house sales that are taking longer because prices are too high & borrowing is much harder.

• A lasting adjustment in the housing market requires one to fix the underlying issues of not enough houses & other policy problems.

 

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