Whether houses are deemed to be overvaluead or not is really of little relevance to anything at all.
House prices "are what they are".
They are only overvalued based on a chart or a line graph or an economist with systematic equations that add up to "they must be overvalued".
They are not overvalued because they are the price they are ........therefore they are correctly priced based on the last buyer and seller.
FMG was apparently overvalued at $2 and went to $10 weeks later.
I bought a HK holden 15 years ago for $2500 and at the time was well overvalued so people were telling me, and I recently sold it for $46,000.
My house in Glenelg was overvalued by $50k when I bought it for $500k......the agent and vakluer both said I paid too much and was nuts.
Now 2 years later im being offerd $800k to sell, which I wont.
It is what it is, not what these economists say it is.
economists are glorified chartists or ambulance chasers.
They can tell u what has happened but dont have a clue about the future...so why u would listen to them im not sure.
They are not overvalued or undervalued, they are priced according to what a buyer paid for it last and what a seller sold it for........that is factual, which means its the correct price for the willing participants.
The overvalued theory based on income, mortgage repayments, inflation,employment, disposable income....yadda yadda is just a load of crock.
The population gets bigger evry year, the inner city suburbs get tighter to enter, the rents get higher, the houses become more expensive and house prices will be much higher in 15 years time than they are now.
Thats all u need to know if u wish to invest in property, dont try to complicate the uncomplicated.
As the economists always do.
90% of them said rates will continue to rise into late 2009/2010.
Now they all jump on the bandwagon of a rate cut soon, lol.
Mind you rates will be cut next month imo........as I predicted 9 months ago.
