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Australian house prices more than nine times median household income; For more than 100 years the average Australian family was able to buy its first home on one wage
Topic Started: 24 Sep 2013, 12:47 PM (6,486 Views)
Strindberg
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There is zero data in the OP article to support the article/thread headline.

The headline refers to median household income yet the article provides absolutely no income data.

The graph in the article is computed based on Stapledon's house prices and Stapledon's inflation data (based on available CPI for the recent years, and various historic price data (not income data) for earlier years).

The graph in the article says nothing about the house price to income ratio. Incomes have not been used to compute the graph.

The following statement in the article reveals the author's feeble-mindedness or his now justified belief in the feeble-mindedness of his target audience (eg whocrashedtheeconomy and others supporting the article).
Quote:
 
As can be seen from the accompanying graph, the median house price is now - in real terms that is - relative to income, more than nine times what it was between 1900 and 2000.
Housing costs to Income broadly unchanged since 1994 - re-ratified here
The People of Australia have the highest median wealth in the World
2002-2012 10 year house price growth the SLOWEST since 1952-1962
"There are two kinds of people in this world: ones that fiddle around wondering whether a thing's right or wrong and guys like us." (Hugo to Gagin in Ride the Pink Horse)
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Massive
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dont get my wrong strindberg...

im very sketptical of the stats presented in the article as well (as there basically are none to refer to ) ... ( i just realised the article indeed states household income )


but dont use mean FHB prices as a basis for comparing trends unless comparing apples to apples ;)

anecdotal evidence from my family suggests it has trended UP to that 3.5 you have given... dont know if the data is available anywhere..
Edited by Massive, 25 Sep 2013, 02:38 PM.
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Strindberg
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genX
24 Sep 2013, 09:24 PM
6310.0 - Employee Earnings, Benefits and Trade Union Membership, Australia, August 2012
In August 2012, the median weekly earnings in main job for all employees was $950

APM Stratified National Median House Price September 2012 $533K.

Median house price to median income ratio = 10.7


...some matador and a bull.....
None of that is relevant. You didn't kill the bull. You yourself were gored.

From the article:
Quote:
 
At nine times median household income......
Housing costs to Income broadly unchanged since 1994 - re-ratified here
The People of Australia have the highest median wealth in the World
2002-2012 10 year house price growth the SLOWEST since 1952-1962
"There are two kinds of people in this world: ones that fiddle around wondering whether a thing's right or wrong and guys like us." (Hugo to Gagin in Ride the Pink Horse)
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Pig Iron
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Bogan scum

strindberg 1 bears 0.

the article does indeed refer to household income for FHB's, then proceeds to use something else entirely.

i'm not willing to give him the benefit of the doubt, he's misleading people.
I am the love child of Tony Abbott and Pauline Hanson
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Strindberg
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Massive
25 Sep 2013, 02:36 PM
dont get my wrong strindberg...
I not aware of doing that. I don't think I've responded previously to your posts in this thread.
Quote:
 
im very sketptical of the stats presented in the article as well (as there basically are none to refer to ) ... ( i just realised the article indeed states household income )


but dont use mean FHB prices as a basis for comparing trends unless comparing apples to apples ;)

anecdotal evidence from my family suggests it has trended UP to that 3.5 you have given... dont know if the data is available anywhere..

Yes, good point but the FHB price/income ratio is surely the important one. The article is clearly addressing the issue of "allowing young homebuyers easy entry into the housing market"

That ratio has trended up but not by a factor of 9 as claimed in the OP article.

The ABS document (Housing Costs and occupancy Report 2011/2012 table 36) from which I derived the 3.5 figure has like for like data for other years.

The author claims the ninefold increase has happened since 2000.

Well, from that ABS report, for 1999/2000 we have (adjusted to 20011/12 dollars by the ABS)

FHBs mean gross weekly income = $1704 ($88,851 pa)
FHBs mean dwelling value = $261k

That gives a FHB price/income ratio of 2.9 in 1999/2000.

So the ratio was lower then but interest rates were higher at that time.
Housing costs to Income broadly unchanged since 1994 - re-ratified here
The People of Australia have the highest median wealth in the World
2002-2012 10 year house price growth the SLOWEST since 1952-1962
"There are two kinds of people in this world: ones that fiddle around wondering whether a thing's right or wrong and guys like us." (Hugo to Gagin in Ride the Pink Horse)
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mango66
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No bubble in Australia, just ask the bulls . That graph looks quite normal.
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Confused
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Massive
25 Sep 2013, 01:08 AM
hahahaah.. genx the image following up the comment was pure gold..

you are so out of it using an individual's income... now its normal to use household income... its kind of how it always was really, so just use it ...

times change - and so does the way we use statistics .. mean income against median FHB price is perfectly representative of the big picture.... everything else is just white noise...
Modern statistics allows you to use figures that suggests FHB earn $2000+ per week?

I think I'll stick with the old usage of statistics thanks.
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