I like this article by Alan Kohler using the counter to public opinion approach
If everyone thinks it's a bubble , it probably isn't
It is true that a bubble followed by a crash would be undesirable, to say the least, but is that what we have coming?
I doubt it. As a rule of thumb, if everyone thinks it's a bubble, it isn't one. Bubbles occur when everyone is complacent.
There is a shortage of housing, especially inner-city, and plenty of demand, augmented by foreign investment, business migrants and SMSFs. It looks to me like the market at work.
And the demand from foreign buyers, especially Chinese, has a long way to go.
Australian houses, especially in Sydney and Melbourne, could be theoretically overvalued for a very long time.
Cliff
If everyone thinks it's a bubble , it probably isn't
It is true that a bubble followed by a crash would be undesirable, to say the least, but is that what we have coming?
I doubt it. As a rule of thumb, if everyone thinks it's a bubble, it isn't one. Bubbles occur when everyone is complacent.
There is a shortage of housing, especially inner-city, and plenty of demand, augmented by foreign investment, business migrants and SMSFs. It looks to me like the market at work.
And the demand from foreign buyers, especially Chinese, has a long way to go.
Australian houses, especially in Sydney and Melbourne, could be theoretically overvalued for a very long time.
Cliff