House Price Affordability

A warning has been given by the chairman of the Future Fund that house prices may be under pressure due to the global economic crisis.

David Murray stated that Australian house prices were higher than the rest of the worlds, this could see economic conditions tighten and prices reducing.

Due to unemployment levels being low young Australians are prepared to make sacrifices in order to achieve the Australian dream of owning their own home, and endeavour to secure ownership as soon as possible.

A recent report published in the Economist stated that Australian property prices were the most overvalued in the world, and that prices are still 56% above the average recorded between 1975 and 2010.

However, it has been criticised by others who feel that Australia's strong immigration figures and housing shortage will support the current market.

Glenn Stevens governor of the Reserve Bank of Australia stated that in his opinion house prices in Australia were not overpriced in comparison to the rest of the world.

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Published on March 3-st, 2011 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
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