Comparing Australian and US Property Prices

The property market in countries like Australia and Canada continue to remain strong despite the global economy mired in recession. Australian housing prices have increased tremendously in recent years. One of the reasons for this growth attributed by experts and others is that demand remains strong due to overseas investors buying up properties. Despite the astonishing rise in property prices over the years Australians seem to be in denial that the housing market is in bubble territory. Interestingly Americans thought the same way about the housing market a few years ago before the bubble burst.

I came across this interesting long-term chart comparing the Australian and US property prices:

Click to enlarge

Source: The Absolute Return Letter June 2012, Absolute Return Partners LLP