What About Australia?

Australia and New Zealand both experienced a sharp run up in housing prices and now many believe that prices have begun to “stagnate” or fall. Since the bubble in that area of the world is supposed to have started before our bubble did, many believe that prices here will follow the same pattern as in Australia and NZ.

“Over the last year Australian house prices have essentially stagnated as the air has come out of the housing bubble which saw national house prices double over the six years to March last year. The big question is what happens next. Australian house prices are still at least 25% overvalued and the experience of the two comparable housing bubbles last century, ie, in the 1920s and 1970s suggests we could be looking at a decade where house prices go nowhere.”