Here is an interesting statistic.
It compares two countries of 6 in the world that The Economist magazine says are in dangerous bubbles.
Number of weeks earnings required to buy a house
1988 - USA 265 weeks Australia 263 weeks
1996 - USA 270 weeks Australia 268 weeks
2003 - USA 310 weeks, Australia 450 weeks
source REIA, Datastream, AMP Henderson Global Investors
What do people make of it? What has changed in Australia in the last few years that could justify this. I dont think its low interest rates as they are lower in the US than here. It shouldnt be immigration as both countries have similar levels of growth.
I would like to know what it is as this is three times the level it has ever been.
Is it sustainable? Does anyone have any ideas?
Cheers
L Bernham
It compares two countries of 6 in the world that The Economist magazine says are in dangerous bubbles.
Number of weeks earnings required to buy a house
1988 - USA 265 weeks Australia 263 weeks
1996 - USA 270 weeks Australia 268 weeks
2003 - USA 310 weeks, Australia 450 weeks
source REIA, Datastream, AMP Henderson Global Investors
What do people make of it? What has changed in Australia in the last few years that could justify this. I dont think its low interest rates as they are lower in the US than here. It shouldnt be immigration as both countries have similar levels of growth.
I would like to know what it is as this is three times the level it has ever been.
Is it sustainable? Does anyone have any ideas?
Cheers
L Bernham