housing prices, page-23

To answer your question....yes we are in a bubble. Turnover in 2010 was ridiculous, average prices are six to seven times the average wage (historically it's been three to four), and mortgage repayments make up a much higher percentage of H/H expenditure which is why even small rises in the cash rate have a massive effect...people don't seem to understand this. We also had some horrendous govt policy which propped up housing under 500K during the crisis by offering larger (or extending) financial incentives to first home buyers (in some market conditions a good thing)....in the conditions we had it had a distortionary effect on prices. The average aussie joe bumpkin idiot can't seem to understand this. The govt doesn't care because their incentive scheme is short term (or their just not clever enough to know).

I honestly don't think it's disputable at this point....but remember this....NOT ALL BUBBLES BURST....this may sound harsh...but i'm hoping it pops like the Hindenburg and we have alot of people sulking about the banks, when really we should all be blaming the policies that allows such a housing bubble to build (as far as bubbles go a credit bubble into housing is about as bad as they come if it pops). Doubt it pops, we may just see no growth for a long long period.

Everyone should also did deeper into what is going on in China right now....they appear to be half way through their own credit bubble.