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Australia housing bubble in the making?

From Crickey

Australia is in the middle of an emerging bubble in housing. There should be no quibbling about a percent here or a decimal point there or trying to excuse the sharp rise by arguing that it followed a fall in the first half of last year. The reality is that they exploded across Australia in the past six months of 2009 and finished the year on a surge.

Figures from the Australian Bureau of Statistics confirm today that showed house prices jumped a huge 13.6% in the year to December, with a rise of 5.2% happening in the December quarter alone. The September quarter’s increase was boosted to 4.4%.

In Melbourne prices soared by nearly 20%, a bubble if there is one. Market forecasts were for a strong 11% rise. They were too conservative.

The ABS figures, long criticised by some in the housing sector as being “too conservative”, were in fact above the 12.1% rise suggested by Australian Property Monitors last month, and the 11.1% increase claimed by RP Data.

Here’s the chart from BI

Ok. before we get so excited about all these, we have to ask ourself, how does Australia affect us in the country we live in. Is it really a concern?

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