Last Updated Mar 2, 2010 4:21 AM EST
(Episode 446; 13 minutes 48) Despite the dire predictions of economist Steve Keen in previous editions of BTalk, house prices in Australia continue to sky-rocket. 2009 was a bad year for property in most parts of the world, but here we saw a 12.1% rise in median prices. In Melbourne it was as high as 18.1%.
Some argue that this places us in a dangerous situation. We'll feel the hurt more than anyone when the next global financial crisis takes hold. Others, like Michael Yardney, a director of Metropole Property Strategists, paint a more positive picture. He says property has always performed well in Australia and several factors will see these strong returns continue for the foreseeable future.
As you'll hear though, he doesn't think everyone will benefit. This is the year that the rich get richer and the rest of us, well we rent. The days of the great Aussie dream of home ownership might be well behind us.
For a bleaker vision of the future listen to recent episodes with Steve Keen:
- Is the Reserve Bank Fighting the Wrong Demon? | BTalk
- Recession is Only the Beginning | BTalk
- Will Debt Drive Us to Depression | BTalk
For more on the Australian economy and the influence of house pricing during the downturn read: