We have written a few times on this blog about property bubbles and have previously included the great interactive chart that the Economist does on Global House prices at least annually. Well its that time again to take a look at it so today we have two charts for you which might put the word bubble into some context. The first chart looks at the house price from Australia, Britain and the U.S. you can see the bubble inflating and in the U.S. and Britain’s case it coming off and for Australia it flattening out. What it clearly shows is that house prices have definitely moved in a bubble like upwards motion, that is not up for debate, although there are many reasons that can explain it and we will only know if it is a bubble after it bursts (as it did in the U.K. and the U.S.)
However, putting these bubbles into context, we add the 3 countries of Spain, Ireland and South Africa, and suddenly Australia doesn’t look so bad after all!…….We can see the spike and crash in Spain and Ireland, whilst South Africa has certainly had a spike but are they (and us) still waiting for the crash?