IMO Bolide is now posting the most rational text on this...

IMO Bolide is now posting the most rational text on this subject.

But the chart posted by BigGambler via post 31854 27/07/10 17.45 gives some clues.

I don't see us ever geting back to the 3.0:1 ratio (house to salary) but I do believe we have to get back to a say "goldilocks ratio where every one is happy" In the oil industry $70/80 per barrel is the goldilocks price i.e. both producers and consumers are happy.

In Oz. housing, we need to get back to at least the 6:1 ratio, still double what it was in the 60's 70's and 80's.

This implies a drop of about 23% i.e back to roughly 2006 levels, or, in the land of utopia, house prices to remain static (no drop) for four/five years whilst wages climb for the same period, but who believes in Goldilocks, I wish I could in my old age.