CAN the Australian housing market recover as it has in the past or is it different this time?
Ask any foreign money manager what scares them about Australia’s stockmarket and they will invariably say the risk of a housing collapse because of gross overvaluations. It makes a lot of sense. Virtually all the Western world has seen house prices crumble since 2007 while Australia’s residential market has defied gravity, recording only gentle declines. The median house price in Australia is six times the median household income – 30 per cent greater than the US and the long-term average.