The RBA recently warned that the housing market is becoming a threat to economic stability.
Separately, Saul Eslake warned that Australian household debt is well out of line with other developed markets and at a new all-time high.
So this chart from Fitch, which shows Australian house price rises since 1997 from a global perspective, won’t surprise you.
But think about how much otherwise useful capital is being tied up in Australians rushing to be property barons.
However, rises are likely to moderate from now on, Fitch says.
“After 15% growth in the past 18 months, we believe Australian house prices are near an affordability ceiling and growth is expected to moderate in 2015-16.”
But after rising so far in the past 17 years, is it any wonder that property investors are now being offered an ability to invest brick by brick.
Perhaps that’s all they can afford.