Normal
Reading a book yesterday...a 350 yr study of house prices in the Netherlands from 1627 to the 1950's showed that after adjusting prices for inflation, houses prices rose on average 0.2% p.a.In Australia in the last 24 odd years, house prices after adjusting for inflation grew an average of 3.6%. The book suggested the main reason was that interest rates went from 15.5% to 6.5%. They have continued to fall since the book was written and prices have continued to grow.Normally they would just grow with wage inflation.If interest rates can't fall much further, house prices are unlikely to increase faster than wage inflation.Then again there is so much variation between cities/suburbs/price brackets
Reading a book yesterday...a 350 yr study of house prices in the Netherlands from 1627 to the 1950's showed that after adjusting prices for inflation, houses prices rose on average 0.2% p.a.
In Australia in the last 24 odd years, house prices after adjusting for inflation grew an average of 3.6%. The book suggested the main reason was that interest rates went from 15.5% to 6.5%. They have continued to fall since the book was written and prices have continued to grow.
Normally they would just grow with wage inflation.
If interest rates can't fall much further, house prices are unlikely to increase faster than wage inflation.
Then again there is so much variation between cities/suburbs/price brackets
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