The Organisation for Economic Co-operation and Development’s (OECD) latest in-depth assessment of Australia maintains that while the “current trajectory” of house price declines “would suggest a soft landing … some risk of a hard landing remains”.
In its latest survey on Australia, the organisation pointed to the possibility of a "significant correction" in the housing market that might result in "financial institution insolvency".
While the OECD argues a "direct hit" from mortgage defaults is unlikely, the report said a dive in consumer confidence as a result of declining personal wealth would hurt the overall economy.
Follow SBS Greek on Facebook
Listen to SBS Greek Podcasts here
Share
