Houses Not Over-priced say Banks

The chief executives of National Australia Bank, Westpac and Commonwealth Bank say that while they are worried about elements of the housing market, prices aren’t over-inflated.

Westpac’s Brian Hartzer says a bubble isn’t occurring in Sydney or Melbourne, where house prices have risen the
most. National Australia Bank’s Andrew Thorburn says there are increasing risks, but he doesn’t believe houses in
Sydney and Melbourne are overpriced.

ANZ Bank CEO Shayne Elliott has previously said he wasn’t anticipating “a calamity or a disaster”. The banks were responding to a parliamentary enquiry as to why they failed to pass on the full benefits of Reserve Bank interest rate cuts to borrowers.

By Terry Ryder –