The Elite Economic Club
A new IMF report confirms that Australia belongs to an elite economic club - one where house prices are way above historical norms.
The International Monetary Fund's data places Australia third among developed nations on the ratio of house prices to incomes, and fifth on the measure of house prices to rents, when both figures are compared to historical averages.
Indeed, Australia is specifically mentioned by the IMF's deputy managing director Min Zhu - along with Belgium, Canada, Norway and Sweden - as one of the countries where house prices are out of whack with where history suggests they should be.
We might be among the worst, but we're not alone: out of 27 OECD countries examined, 19 currently have above-average house price to rent ratios; and 14 out of 24 developed economies still have above-average house price to income ratios, even after the dent in home values in many countries caused by the global financial crisis.
In this month’s Bevans Update Troy Gibson talks up the Australian market internationally.
by Will Soeterboek on 30 July 2015
Filed under Places