Little is mentioned that the median price of a new home fell to $206,200 in June from $219,000 in May (small caveat). A drop of over $13,000 in one month apparently is not important enough to discuss.
Then go and check out this graph of Sydney media prices. It appears to be about $575,000 - nearly triple the US price.
In Australia as a whole, we have this:
That is undeveloped land. In the US, you can get a block on it with a house for not much more these days. Yes, I know there is a difference in exchange rates and so forth, but consider how many multiples of income are required in each country in order to buy a house at the media level.
The Housing Industry Association (HIA) residential land report shows the weighted median price of undeveloped land in Australia increased by 7.4 per cent in the March 2009 quarter to $172,490, following four consecutive quarterly declines.
The report, conducted in conjunction with RP data, found the most expensive market was Sydney with a median price of $259,000.
Household media income in the US is just over $US50,000. In Australia, it is about $AUS53,000.
In the US, you can buy a house on a multiple of 4 times median income.
In Australia, the figure is closer to 11! Just to buy a vacant block takes 5 times media income. I guess you can add another 3 times median income to stick a basic home package on top of it.
This is one reason why I think property prices here are heading for a fall.