Based on recent pops in other countries, that would be after a protracted period of growth in price/income ratios, plus a construction boom that leads to a large glut of unsold homes.
Based on recent pops in other countries, that would be after a protracted period of growth in price/income ratios, plus a construction boom that leads to a large glut of unsold homes.
When will the 'inevitable' Australian property crash begin? When does 'The Bubble' actually pop?
It‘s very difficult to time these things with any accuracy and property markets are generally much slower moving than other markets, I therefore voted after 2018.
The Australian property market has been in a bubble for over a decade now fuelled by easy cheap credit so we will have to wait until we get a clear indication of a change in direction before any crash is likely. All indications are that the already dire economic conditions in the US & Europe will continue to deteriorate so even lower rates are to be expected. This will, of course, fuel speculative demand for high risk assets such as property.
This additional fuel being added to the Australian property bubble will ensure a spectacular collapse when it finally arrives.
The Australian property market has been in a bubble for over a decade now ...
Why do you say this is a bubble? Is it because you are comparing prices to the late 90's when property was very cheap and undervalued? Are you expecting property to return to an undervalued state?
Why do you say this is a bubble? Is it because you are comparing prices to the late 90's when property was very cheap and undervalued? Are you expecting property to return to an undervalued state?
Talk about value judgement
You say they were very cheap and undervalued, but in fact they were then at all time highs well outside long term averages
WHAT WOULD EDDIE DO? MAAAATE! Share a cot with Milton?
Why do you say this is a bubble? Is it because you are comparing prices to the late 90's when property was very cheap and undervalued? Are you expecting property to return to an undervalued state?
Australian property is in a bubble for many reasons: Easy credit, lose lending standards, price increases higher than wage growth over the last few decades, government protection from natural corrections, a poor understanding of risk etc.
All asset prices fluctuate between over-valued and under-valued, so yes property will one day become cheap again.
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