Forget about the article written in theage and read the source...

  1. 104 Posts.
    lightbulb Created with Sketch. 2
    Forget about the article written in theage and read the source at:

    http://www.rba.gov.au/publications/rdp/2014/pdf/rdp2014-06.pdf

    One of the best papers on house prices I've read.

    The real conclusion on whether house prices are overvalued or not is that it depends both on your individual circumstances your expectations of capital appreciation.

    An argument is presented for trending price-to-income ratios rather than reversion to a mean due to limited supply.

    I agree largely with the methods they have used to evaluate prices.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.