@Tylemahos HOUSING; a subject close to most of our hearts; FWIW I agree with most of what @Orwell said x 2.
I have always believed that housing VALUE (unlike most things) should have a direct correlation to affodability and the best measure there is "average" wages. By average i am talking the GJperceived average (GJPA) from my experience. Affordability index (AI) = price of house / GJPA
Let me explain from a few real examples:
- In mid 1980's my GJPA was about $30k bought a 3 BR reno's delight inner Melb for $40k AI =1.3
Current GJPA $90k same house value = $1m Current AI = 11+
-Paul K recession we had to have 1993; GJPA = $60k bought hol house $110k AI= 2
Current house value =$600k Current AI = 7ish
- 2000 bought inner city town house $345k GJPA = $80k AI = 4.5 Current value = $900k
Current AI = 10
-2007 bought inner city 3BR period home $690k GJPA =$100k AI = 7 Current value $1.2m
Current AI = 12
Can argue about my GJPA estimate, BUT the fact is houses have become incredibly expensive when measured against the cash peops have to buy them.
Would certainly not be buying in this market and if I acted with head not heart would sell my current properties.
just my thoughts ... back to the charts ...
(20min delay)