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Jan 05

Perhaps House Prices are a bit high in Austraila?

It appears there is a breakdown in the relationship between unemployment and house prices. I hazard a guess that its due to the low home loan interest rates we currently have (see my previous post) but given it appears the Reserve Bank looks like increasing rates further this year, for how long will this breakdown last?…probably not too long…my guess….house price growth is unlikely to be sustained and the property purchaser needs to be careful.

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