There is a growing awakening to the possibility of a real estate bubble in Australia. Although not universally accepted, there are classic signs that house prices are overvalued: high annual growth rates over many years; no adjustment of prices after the 2008 financial crisis; one of the worlds highest ratios of average house price to average salary.
Since the 1970s property prices have increased by approximately 3% per annum, a figure broadly in line with inflation. From the 1990s however the yearly increase has been closer to 6% per annum, close to double the rate of inflation.


















