Please click the link below to view Shane Oliver's views on the state of the Australian home prices and interest rates.

Key points covered are;

• A housing recovery has been a necessary aspect of rebalancing the economy through the mining bust.
• While Australian property prices are overvalued, this should not be a constraint on the RBA.  Expect another rate cut in May with the possibility of more to follow.
• The medium term return outlook for residential property is likely to be constrained.