Who's afraid of a housing bubble? Six graphs that show why you shouldn't panic

Posted by Simon Dehne on February 29, 2016 in Latest News with No Comments

housing_bubbleContrarian economist Jonathan Tepper this week re-ignited an age-old debate about whether we are in a property bubble, after raising the alarm bell about Australian house prices.
He pointed to data including a surge in household debt, a boom in interest-only lending, and much higher house price to income ratios, and predicted a plunge of up to 50 per cent in Sydney and Melbourne property prices.
The economic trends he identified are all true. They have been repeatedly highlighted by bodies such as the Reserve Bank, the Australian Prudential Regulation Authority, and the International Monetary Fund.
Alarming as his claims are, however, it is worth setting them against some other economic trends, which analysts say should dampen some of the fears about the property market.

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