Moodys Analytics managing director Tony Hughes warns that Australian banks have the highest concentration of residential mortgages than any other type of institution in the world, making them vulnerable to a possible house price correction. According to Hughes, Australian house prices are overvalued. When compared globally, prices in Australia have increased for longer and faster than in many of the markets where prices cratered during the Great Recession. Although local analysts have downplayed the threat of a housing collapse, the experience of a financial crisis caused by US subprime mortgages is proof that Australia is not immune. (VIEW LINK)
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I feel like the Australian Housing Bubble argument is starting to get long in the tooth. The reality is that with only a few major centres of population demand gravitates towards these areas and holds up the housing prices. If you want to live in a city there are only a few options/choices available