Breaking News: Houses are overpriced

Australian home prices are rising at the fastest pace in more than three years. Australian houses are 7 percent overvalued based on long-term trends said AMP Capital Investors Ltd. Australian homes are the sixth most overvalued globally and the house-price-to-income ratio was 21 percent above its long-term average according to the OECD.

“I wouldn’t put housing in bubble territory,” said Gavin Slater, head of NAB’s retail bank,
“Growth rates of 4 percent to 4.5 percent in mortgages probably doesn’t appear unreasonable.”

Source: Bloomberg News