Finance & Fury Podcast

Welcome to Finance and Fury,  Are we in a property bubble? There is no question that the Australian property market has become significantly overpriced – but is it a bubble and due for a significant downturn? – For this – only talking about capital cities – most of the land isn’t in a bubble First - A property bubble is a form of “economic bubble normally characterised by a rapid increase in market prices of real property until they reach unsustainable levels relative to incomes and rents” – then like most bubbles – prices at some point decline History - Australian house prices rose in correlation relative to average wage-earning – up until 1996 June 2014 - IMF reported that house prices in several developed countries are "well above the historical averages" and that Australia had the third-highest house price-to-income ratio in the world.  2016 – OECD - reported that Australia's housing boom could end in 'dramatic and destabilising' real estate hard landing In past 12 months - Sydney and Melbourne have exp