From bubble nay-sayer, Bloxo comes more Bozo Joe bashing:
Nation-wide housing prices are up 24% over the past three years, but these gains have been uneven across the country
Sydney housing prices have risen 39%, Melbourne by 22% and prices in the rest of the country are only up 10%
We have few concerns about a nation-wide bubble, but the Sydney market has an exuberance that is worrisome
Of course it’s a national bubble. The Sydney premium to other cities is around its long term average so if it is a bubble ipso facto so is everything else. I mean, seriously, if Sydney were to deflate, other markets wouldn’t?
I just love that chart, as if low interest rates and greater access to credit aren’t preconditions for a bubble!
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
