Health Minister Mark Butler has again backed the modelling underpinning the government’s housing tax package despite a drop in house prices.
According to property data firm Cotality, dwelling values fell 0.4 per cent nationally in June.
Butler told ABC’s News Breakfast that it was normal for house prices to “jump around a little bit” but didn’t think that was as a result of changes in the budget.
Rather, a softening in prices and auction clearance rates was due to interest rate rises, and the “biggest hit” the Iran war caused to consumer confidence had more of an impact.
The Labor frontbencher said was “very confident” in Treasury’s modelling. The modelling included in the budget suggests house prices would continue to rise, albeit at a slower rate.
“They’ve thought about it very carefully. The history of house prices in Australia is one of growth … and that doesn’t mean there won’t be a week here or a week there that you get particular numbers,” he said.
“But we’re very confident in Treasury’s forecasts. House prices, house values for existing owners, will continue to grow.
“They’ll just grow a little bit more softly for a period than otherwise would have happened.”
