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History would prove otherwise grossreal. Our currency went from below 50 US cents in 2001 to near parity today. There have been other periods of large volatility as well. We are a country with a large and growing foreign debt that doesn't produce much except for commodities. When the...

When they talk GDP growth they are talking real growth - i.e. they adjust the nominal GDP number for inflation. Now I ASSUME the adjustment factor is headline inflation. Are you telling me it is adjusted only for CORE inflation? If this is the case then the number is rubbish - a real concern...

An idea might be to deflate the nominal property prices by the non-tradable component of CPI. It would be interesting if it gave a flat trend (I doubt it but you never know).

Thanks for the explanation - I wondered what you were trying to do. So you are arguing that the multiplication factor is relatively constant and we are mainly looking at a compounding effect when we put up the scary charts on nominal median prices - so therefore its not an unusual run up in...

I don't know what chart you are looking at. Except for Sydney all of the cities charged upward over that period - not flat. Slightly less of an angle I suppose but still well above inflation. That's how it has happened in the past - agreed. A flattening in nominal values, high inflation...

I might add - Western Sydney might have already had its bust. If the property sector turns sour at the macro level it will be interesting to see if Western Sydney is insulated - sort of like backburning in a bushfire!

Shadow - I think we agree there was a boom. A big one. Arguably the biggest in history infact over such a short space of time. Where we disagree is whether there has already been a 'bust'. Except for Sydney all of those lines are heading up. Looking at your numbers Brisbane for example...

Are you kidding me?!?? It had a 'breather' where it went flat for a bit and then it took off on the same upward path it had been on. The only place that had anything close to a bust was western sydney. Australia's bust is still coming. A little unemployment is all it will take to dent the...

Yes Kenneth - there is a lot of realestate industry propaganda that the media happily redistributes as "stories". There may be a shortage - I don't know. The argument against a shortage for me is the argument you just put forward - there have been shortages before that have just...

It was a joke - made me smile. "that reminds me of back in 1929 ... " - I can just imagine a 92 year old bloke saying something like that. :)

It's not either / or. You could partially sell up and put it in the bank if you were worried.