International house prices

This article examines developments in house prices in a number of countries over recent years. It shows that while the magnitude of house price movements have differed across countries, the recent trend of rising prices in Australia has also been experienced in some other developed countries. This article also examines changes in housing affordability arising from changes in house prices, interest rates, housing debt and disposable income in the United Kingdom, Australia and the United States. Finally, the relationship between house and share prices is also discussed.