some interesting stats on housing

how would an interest rate of 17% affect your views on housing ??? think most of us would run for cover...no way would you be buying...
well in 1986 variable rates were 15.5...by 1989 it was 17%.
1991 to 13% 1992 to 1996 ..10.5, dropped to 7.2 in 1998, 1989 ...6.5, 2000.. 7.8...2002,,6.5

house prices ..fhb in 1986 was 67,000, 1989...107,000, by 1992 ..117.000 (rates at 10.5) rose about 10% pa until 1999 at 185,000 (rates were still 10% in 1996 but 6.5% by 1999) by 2000 houses were 205,000 rates 7.8%

the biggest jump in house prices was between 2002 (rates 6.5%) at 229,000 to 2004 at 330,000...rates 7.05%....

so interest rates really do have a big impact on house prices....all the years when rates were high, house prices were low...but still managed to rise about 10% pa...
those charts do not show a huge impact on house prices from 1989 to 2000...house price crash time
the biggest jump in house prices occured between 2002 to 2004 when it jumped by 100,000 but look how low the rates were 6.5 to 7.00%.............
I dont have the figures for the last 2 years when interest rates rose to 10% again....but house prices should have slowed down , which they did....
sobering stats for the home owners and investors.....

the disposable income will open your eyes...in 1986 it was 31,000 by 2000 it was 58,000, 2002 ...64,000 and 2006...73.000.........they use the disposable income as a measure of affordability.....
here are the sources
for house prices
http://www.aph.gov.au/library/pubs/RN/2006-07/07rn07.pdf
and interest rates
http://www.aph.gov.au/LIBRARY/Pubs/rn/2006-07/07rn08.htm