Chris Joye chimes in on the bubble debate:
The biggest bubbles also tend to be accompanied by manic buying (tick that box), backed by high leverage (tick) and hyperbolic defences (tick) of the crazy prices (tick again). My next door neighbours traded their Sydney property, which recent sales implied was worth no more than $4.4 million, for a million dollars more than that level last week after only 14 days on the market.
In 2015 the myth being propagated by bank economists – no conflicts there – and home buyers hysterically chasing prices higher is that the RBA will ensure interest rates remain low for long. And this is really the threshold issue.
