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There's a difference between explaining the factors which allowed house prices to rise and using those factors to change the way you measure whether an asset is overvalued or not. Drozda's argument that Australians have the capacity to pay these prices, so they are not overpriced is just...

I wrote a response to some of Arek Drozda's views on PO: http://www.propertyobserver.com.au/forward-planning/investment-strategy/market-trends/36746-subjectivity-damned-subjectivity-and-housing-statistics-boullion-baron.html Drozda says that principal is omitted because it equates to savings...