Dec 09, 2011 11:08 AM GMT
mattyrec saidDo you think the place cums "furnished"
theantijock saidThat real estate ad certainly shows a nice bubble...
76coopers saidtheantijock saidThat real estate ad certainly shows a nice bubble...
Your graph does not indicate a bubble as there is insufficient information to make that assertion. A real estate bubble is a relationship between demand and supply and is correlated to the overall health of the economy.
The Australian economy is one of the strongest in the world being the only OECD economy to avoid recession during the GFC.
On top of that demand for housing has long outstripped supply in Australia, particularly in the capital cities, and that's actual demand, not speculative demand. The proof is the dramatic rises in rental costs in recent years.
The housing market is much more secure here as our major banks are all AAA grade at the global level. In addition investors do not have the luxury of walking away from mortgage debts when the market takes a dive so we won't experience the same fire sale the US has been through recently.
Perhaps you need to do a little more research before grabbing the first graph you find and assuming that the rest of the world is headed down the path the US has taken?