According to Google Trends, searches for “housing bubble australia”, “australian housing”, “australian housing bubble”, “sydney housing bubble” and “housing market bubble” surged last month to levels never seen before.
Highlights of June 2015 included:
- Treasurer Joe Hockey denying there was a housing bubble and telling first home buyers they should get a “good job” that pays “good money.”
- Treasury secretary John Fraser telling Senate, “When you look at the housing price bubble evidence, it’s unequivocally the case in Sydney.”
- Reserve Bank Governor Glenn Stevens saying, “Yes I am very concerned about Sydney and some of what is happening is crazy.”
- Organisation for Economic Cooperation and Development (OECD) warning Australia’s residential property markets are at risk of a “sharp correction”.
- World’s biggest bond investor, PIMCO, warned Australians are being “irrationally exuberant” by borrowing too much to invest in residential housing.
Figures released yesterday by the Reserve Bank show Australia’s households now have debt levels of 155.9 percent of household disposable income, a new all time high.