House Prices Going Nuts (Again)
In The AFR today I publish new analysis demonstrating that the Aussie housing market is going nuts again with national prices soaring 4% over the 3 months to 18 May---or at a 16% annualised pace---and by almost 10% over the prior 12 months (Sydney and Melbourne are now both up more than 12.3% over the last year) on the back of the RBA's cheap money policies. I don't pull my punches with my former RBA colleagues either (one bank CEO recently asked me whether I had a "death wish" following my revelations in relation to Macquarie Bank's controversial global high yield debt strategy). In short, I skewer the Governor using his own decision-making rules (articulated in mid 2012 and mid 2014) regarding not inflating already expensive housing and high debt levels just to lower the jobless rate. And check out my chart below comparing house prices to wages and inflation since June 2012. Read for free (VIEW LINK)
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