Rising property prices in both Sydney and Melbourne have sparked economists to relive the dreaded Global Financial Crisis, citing similar trends that caused properties to be overvalued. But, does the data show identical results? Several leading economists break down the current values in the housing sector and why talks of a property bubble are not in sight.
Back in 2006 and 2007, the nation experienced really high volumes of property. A couple of weeks ago, both Melbourne and Sydney recorded the highest number of properties offered under the hammer. Economists are convinced that this is not a cause for concern, as the property volumes for this year still pales in comparison to the number of properties offered in 2006 and 2007.
Property prices are still on an upward trend and with the recent announcement of the RBA to keep the interest rates at 2.5%, a sudden drop in property price is very unlikely to cause a property bubble.
To read more what other economists have to say, head to the Property Observer website.