Sydney house prices 30% "overvalued"

A lot of ink has been spilt over the rise (and further rise) of Sydney property prices in recent years. Some suggest the rise in prices reflects strong Chinese buying and the “internationalisation” of the Sydney market. Other suggest it’s a dangerous bubble and note the house price-to-household income ratio is well above long-run average levels. The chart bellow puts the Sydney market in perspective. As seen, the Sydney house price to household income ratio was 7.3 in the June quarter, which is above its average of 5.7 since March 2004 and its previous peak of 6.7 in the December quarter 2003. That said, at only 4.6%, it’s also apparent that mortgage rates are also well below their average since March 2004 of 6.5%. To read more visit: (VIEW LINK)