housing boom is over, page-79

simple really:

Oz on any objective price metric is the most expensive in the world on:

a) price / rent; and
b) price / earnings.

(source: OECD).

If you want to see a real life example of how:

a) house prices drop >10%; and
b) supply quickly becomes a non issue

then turn your head towards the US and the UK.

Oz led both the countries into the rise.

There will be a huge divide between the haves and the have nots. Some areas will continue to do fine thank you because they are not interest rate sensitive & have bought for lifestyle purposes.

But if you're an investor relying on property then you're in trouble. Rent increase will not cover mortgage increases, rates will continue to increase whilst we will soon see home values fall. Just like the UK and US, it's the titanic turning. And because Oz wentup higher, it should probably fall further.