Housing overvalued and vulnerable to correction

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ScreenHunter_30 Oct. 10 06.15

By Leith van Onselen

Deloitte-Access Economics released research over the weekend claiming that Australian house prices were 10% over-valued against incomes and risked a correction amid slowing income growth and possible rising unemployment as the China-led commodity boom unwinds. From The Australian:

“Our measure showing prices are 10 per cent overvalued is in ‘alert but not alarmed’ territory. However, it is certainly not a bubble”…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.