I have ALWAYS said house prices in Australia have always trended just under 4 years wages, doubling since 1999
Your quoting a conversation refering to house prices in the 80's 90's.. Lets grow up and get our facts right before we go picking online fights making ourselves look petty and stupid?
Acorn
Good to see your research skills extend as far as looking at the last 17 years (through the boom) of Australian property.
Maybe have a look around all other housing boom/busts back in history and also in other country.. There has been many so will be easy to find.
I'm not going to waste my time digging up charts as its pretty clear your not interested in looking at this and just want to pick a fight.. But most recently when homeloans hit 17.5% (are you even old enough to remember that) in Australia housing went into a downturn dropping from 4.7 years wages down to 3.7 over a period of 6 years (20%~).
To say interest rates wont go up to 9% is just insane and shows no understanding of how central banks work, it wasnt that long ago they were nudging 10% and everyone was screaming and house prices fell 15% over 9 months in Australia.
RBA wants to get the interest rates rising, hence its warnings to speculators, but it cant while the Fed has theirs at 0% as it makes the $AU too attracive.
