Housing boom days gone for good

by Adam Smith15 Jun 2012

The days of the housing boom are unlikely to return, a major bank boss has claimed.

News Ltd has reported that Westpac chief executive Gail Kelly told an economic forum in Brisbane that compound growth in house prices would not return. Kelly said consumers were now deleveraging, and would shun high levels of debt. Kelly told the forum that the current environment represented a return to "old-fashioned banking".

Kelly's comments echoed those of RBA governor Glenn Stevens. News Ltd has reported that Stevens told business leaders consumers were "grumpy" because of the dramatic structural change taking place in the economy following the housing boom.

COMMENTS

  • by Ros Buzza 15/06/2012 10:19:33 AM

    Is Gail going back to the old style renumeration packages for herself and her fellow execs? I doubt it.

  • by Country Broker 15/06/2012 10:22:23 AM

    big statement but the most sensible thing she has said in a while !

  • by peter vella 16/06/2012 6:18:36 AM

    IF WHAT MISS GAIL SAYS IS TRUE WHY WOULD ANYONE BUY A HOME OR INVESTMENT FOR.......