Budget not to blame if house prices fall, says Housing Minister | Insiders | ABC NEWS

Housing Minister Clare O’Neil says if predictions come true that house prices could drop by 10%, it won’t be the fault of the government’s federal budget.

“House prices in our country move. The biggest driver of them is what goes on with interest rates,” Ms O’Neil told ABC’s Insiders.

The minister was also asked if the federal government’s 5% Deposit Scheme combined with a potential fall in house prices could see many young people owing more than they own.

“This is a really robust scheme. Defaults against this scheme are vanishingly rare,” she said.

Treasury forecast in the budget that house price growth would slow by about 2% in the short term. The Grattan Institute and Commonwealth Bank have supported that forecast.

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