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Australian housing – is it a bubble?

Posted on 30 November 2010

From Smartcompany.com.au: Australian housing is not in a bubble but it is very overvalued, and combined with high debt levels leaves Australian households vulnerable should anything significantly threaten house prices. It is a reason for the RBA to tread carefully in raising interest rates.
Poor and worsening affordability will likely lead to soft house prices over the next year or so. Key factors to watch for in terms of the risk of a substantial housing slump are a collapse in China leading to much higher unemployment, excessive tightening by the RBA and a big increase in the supply of housing……………………………………….Full Article: Source

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Laxman - who has written 28515 posts on Opalesque Real Estate Briefing.


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