Someone posted the link yesterday to a report showing that Australia had the most unaffordable houses in the world.
It appears that house prices which are 3 times annual earnings are OK. More than that is trouble for the borrowers.
Australia's average is 7 times Annual Earnings and is extremely unaffordable. Interesting is that a lot of the USA is 3 times AE.
There is no doubt that our Real Estate is over the top and will drop severely. Based on the report a 50% drop would still not get us affordable housing.
