Latest BIS chart showing national property price growth in a bunch of advanced economies:
Interesting that Norway and Sweden both beat Australia - do they have their Simon's and co screaming house bubble I wonder? Also UK, NZ and Canada are not that far behind Australia. Which all goes to show that 20 year property price appreciation in Oz, while on the high side, is not particularly exceptional on a global scale, nor are we "number 1" as claimed by many hysterical bearish reports (eg Demographia etc).
It would also be interesting to see what would Australia's line look like if you filtered out the more global, population pressured cities like Sydney and Melbourne? Probably would look very modest I expect?
For Aussie property bears, "denial", is not just a long river in North Africa.....
"Sweden is dealing with its overheated housing market by reining in mortgage availability. Regulators introduced restrictions which will mean mortgage terms - the time homebuyers have to clear the debt - will be drastically reduced to just... 105 years. The move comes because historically there has been no time limit on mortgage duration. So as prices rose and affordability became tougher, Swedish banks' response was to extend terms, as had been the case in other high-cost property markets including Japan in the Eighties. The average term is reported to be 140 years. This meant many people who inherited property but who could not afford to take on the mortgage debt had to sell up."
Pomeroy argues that the economies of both Sweden and Norway are carrying huge debt loads relative to GDP, but consumers there may be lulled into thinking everything is OK by their high property prices.
Quote:
Both countries have central banks that have set interest rates near zero. (Sweden’s is actually negative.) The upshot, Pomeroy says, is that if a recession comes — or interest rates rise — then neither economy will be equipped to deal with it. Central banks can tackle recessions by lowering interest rates, but that weapon is effectively unavailable in both countries. Similarly, debt levels are comfortable now because interest on debt is so low. If rates rise, then the risk of consumers defaulting on their debts increases in both countries.
And that was in 2015.....
Now's your chance to convince us that DEBT does not matter.......
So you do agree with the IMF that there is a Bubble just not the 40% figure of over valuation.
It is always the same figure no matter the asset class being discussed or time. When the Sydney "bubble" was first going to bust prices were going to fall from $750,000 down to $450,000. Now prices are going to fall from $1m down to $600,000.
It soothes the soles of morons like you and you miss the irony of the repetition because you don't have two neurons to rub together. Nothing more. Nothing less.
My only hope for my three boys is that they turn out nothing at all like Chris.
It is always the same figure no matter the asset class being discussed or time.
It soothes the soles of morons like you and you miss the irony of the repetition because you don't have two neurons to rub together. Nothing more. Nothing less.
Always.....Like every time.......Can you provide evidence of your claim?
Oh.....More babble but no facts Matthew.........
Yes you know more than the IMF.......
I love personal attacks..................Means you got nothing as usual.
My feet don't feel sore even after sticking them in your ass.............
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