The reasons why the property bubble in Australia is at risk of bursting are numerous.
-Clearance rates are low.
We therefore have an OVERSUPPLY of houses on the market at present, not a SHORTAGE.
-Property Price to income ratio is at all time highs.
-The world macroeconomic environment is ridiculously unstable.
-Rental yields are on average, very ugly.
-Data is showing property prices are already on the slide
-Banks do not have much more room to move interest rates downwards due to shortage of available loan capital resulting in tight margins.
-Unemployment is near all time lows (capacity) which means, the only way is up.
-Divorce rate is highest in the world, resulting in an UNDERSUPPLY of dual income families and hence lesser demand for overpriced houses.
-There has been a tripling in household indebtedness since 1990.
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