Housing bubble ‘set to burst’

News Limited Journalists have crafted up an article today which originally was titled Housing bubble ‘set to burst’.

HOUSE prices could fall sharply if a global slowdown continues to hit the domestic economy, forcing up unemployment and causing repossessions to soar.

However in continuing with their Reserve Bank bashing, the headline was later changed to ‘Rates cut could come too late’ again blaming the RBA for this mess.

House prices in Australia have risen more sharply than comparable nations and leave us exposed to a sharp fall as soon as unemployment rises.

Economists are warning that Australia’s property is even more overpriced than in America, which has seen prices slump by as much as 40 per cent in some areas, and no bottom in sight.

And a report last week warned that Australia has the most expensive property in the world, relative to incomes.

but the truth comes out :

“Australians have been living on excess for many years, spending too much on property, on credit cards, on everything.

» Housing bubble ‘set to burst’ – News Limited, 10th August 2008.