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Australian house prices climbed 123% between 2002 and 2010, and now they are starting to fall. House prices in the capital of Victoria fell 6.6% in the year to June, according to RP Data, reports Bloomberg.
“Building work started on a record 47,293 homes in Melbourne in the 12 months ended June 2011, compared with estimated demand of 32,334, according to figures from researcher BIS Shrapnel,” reports Bloomberg.
The Reserve Bank of Australia has already cut rates by 125bps since November 2011 in a bid to stop the bubble from bursting.
I have written about this before. Watch out below. A major crash is coming.