A US investor with a history of picking market bubbles says it is a near certainty that Australia's home prices will fall.

Jeremy Grantham created a stir last month by claiming there was a bubble in the Australian housing market which would inevitably fall, and reiterated his view overnight, while looking for more price falls in the US and UK.

''Further …decline in house prices in the US is probably more than a 50-50 bet, and in the UK and Australia is nearly certain,'' said Mr Grantham, chief investment strategist of Boston-based fund manager GMO, in his quarterly note to investors.

Mr Grantham said economic growth in Australia, along with Canada, looked ''okay'' but both economies were propped up ''by raw materials and, so far, un-popped housing bubbles".

Historical data on 34 housing bubbles compiled by GMO show that all but two returned to their earlier trend. The two exceptions are Australia and the UK, where home prices are climbing again after falls around the time of the global financial crisis.