Australian Property Bubble article on Associated Content

Australian Property Bubble

Are Australian House Prices Overvalued?

"...Normally in an unregulated economy, housing values should meet an equilibrium based on availability versus demand. When values increase, this suggests that availability has reduced or demand has increased (or both). In fact in Australia, both events have occurred. First, very low age interest rates and easy credit conditions led to increased borrowing capacity, thereby boosting demand for property. Second, strong population growth (including immigration and natural growth) further lifted demand. Third, the Australian government choked the supply of new dwelling stock, through high taxes and roadblocks on residential development. Finally, government incentives, such as taxes and grants are directed at the property market, also increasing demand. As a result, Australian median house prices have been on a rising trend in real terms (after inflation) for around sixty years, have increased particularly sharply from late 90s to early 2000s, and have remained at those elevated levels to the present day..."

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Australian Housing Bubble

Australian Property Forum

The Zetaboards Australian Property Forum at http://s4.zetaboards.com/Australian_Property is an Australian economics & finance forum dedicated to discussion of the Australian and global housing markets, including Australian house prices, global house prices, affordability, the likelihood of a global house price crash (GHPC), or an Australian house price crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is it better to buy or rent? How might a credit crunch or peak debt situation impact Australian property prices? Is the Australian property market a pyramid or Ponzi scheme? Can house prices rise forever, or can we find a more simple and sustainable long term approach to managing the Australian housing market? These are the type of questions we hope to address here, at the Australian Property Forum, the premier site for property bears, bulls, investors, speculators and specufestors! This site includes a blog feature, so members may create their own property blog, bubble wiki or 'bubblepedia' (encyclopaedia of the Australian house price bubble). Members may also talk finance, talk money, debate kangaroo house prices, or discuss Somersoft style property investing topics.

Australian Property Forum
http://s4.zetaboards.com/Australian_Property