House prices in the June quarter fell slightly off the back of three interest rate rises and the changes to the capital gains tax discount and negative gearing. But prices remain extremely high.

In the June quarter the total value of Australia’s housing fell $34bn. Sounds like a lot? In percentage terms it was just 0.3%. That’s because in the June quarter the total value of Australian housing was $12.18tn. And here’s the kicker: that is $948bn more than it was a year ago.

The horror warnings about Australia’s “collapsing” housing market really are quite stupid – and very much in bad faith.

That bad faith began before the budget when vested interest groups and the opposition suggested the capital gains tax (CGT) discount and negative gearing had no impact on housing affordability and cutting them would not do anything to house prices. Now they are to blame for prices falling!

Those vested interests have been loudly crying about the fall of house prices and the “brutal” tax changes.

On Tuesday the latest total value of dwellings (houses and apartments) figures provided some much-needed data on the idiocy of the debate.

These latest figures only go to the end of June, so we have yet to see an entire quarter under the new rules, but........

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