House prices ‘world highest’ (The Age / Tim Colebatch and Jewel Topsfield)

From the article: “AUSTRALIA has by far the most overvalued houses in the Western world, with prices 52 per cent higher than justified by rental values, the OECD says.

In a new analysis of the housing boom sweeping developed nations, the OECD also says the price of housing relative to incomes is 50 per cent higher in Australia than in other countries as a group.”

It’s been pretty obvious to anyone looking to buy a house for a couple of years, but now the OECD has confirmed house prices in Australia are just plain nuts. As a renter looking to buy I’m hoping for a massive crash in the property market. Other than winning the lottery I don’t see any other way to be able to afford a house in the near future.