Labor MPs Dither on House Prices, Caught Between Truth and Policy

When asked about falling house prices, Labor MPs struggle to find an approved answer. On one hand, they don't want to terrify homeowners by being too enthusiastic. On the other hand, if they're too negative, it's harder to argue that the government's housing policies are improving affordability.

Backbencher Josh Burns was put on the spot during a recent session when he was asked whether he was concerned about borrowers slipping into negative equity, a situation where their home is worth less than the mortgage secured against it. To address this concern, Burns pointed to Reserve Bank of Australia figures showing that in 2018 and 2019, under the Coalition government, there were actually more borrowers in negative equity.

This highlights the complex issue at hand, with Labor MPs caught between speaking truthfully about falling house prices and supporting the government's policies. As the situation continues to unfold, it remains to be seen how they will navigate this delicate balance.