Stockland (ASX: SGP) managing director Matthew Quinn should be applauded for his honesty. House prices are still too expensive, writes The Motley Fool.
When the managing director of the country's leading property developer says Australian housing is expensive, property investors must know they're in trouble.
According to the Australian Financial Review, Matthew Quinn of Stockland said the average family should be able to afford the average house.
They can't. The average house is $500,000 and while the average family can afford $329,000.
"There is something blatantly unfair with that," Mr Quinn said.
Property developers generally have a habit of talking up their own book, spruiking the old supply/demand arguments when the simple facts are most first-time home buyers simply can't afford to enter the market.
That property, at these levels, is a poor investment choice should be old news for Motley Fool readers. Over a year ago we suggested Australia might be the last giant property bubble.
The long, slow decline in house prices is set to continue.
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