Sydney House Prices...in a bubble since 2013 and at least 13% overvalued

I've been looking for a house over the last 8 months and have just been amazed by the prices that even quite modest houses now command. So are we in bubble territory.


Well if you look at the differential between the Weighted Average House Price index across the 8 capital cities of Australia and compare it to the Sydney House price index and there is no doubt we are in bubble conditions

In fact, based on this, I calculate that Sydney house prices are around 13% over valued.