Via Domainfax:
Sydney and Melbourne house prices appear to be around 25 per cent to 30 per cent overvalued and housing market risks are concentrated in those cities, Capital Economics’ team says.
While taking a look at the possibility of whether housing is generally overvalued across the country, the economists noted that, away from Sydney and Melbourne, once a structural decline in interest rates over the past 40 years is taken into account, in most capital cities housing is “hardly overvalued at at.”
