The Australian housing market is at the start of a boom and is not in a bubble, with any such concerns premature, HSBC's economists Paul Bloxham and Adam Richardson say.

But the risks of inflating a potential bubble could see the Reserve Bank become reluctant to cut rates further, the economists said in a research note today.

The risks of inflating a potential bubble could see the Reserve Bank become reluctant to cut rates further. Credit:Rob Homer

They added that the rise in prices was trickling through to housing construction growth, as recent figures on building approvals have shown.