Comments on Chirstopher Joye "Australian housing's hidden US affinity", 4/08/2011, http://www.businessspectator.com.au/bs.nsf/Article/property-US-Australia-home-sales-house-prices-pd20110804-KE3WV?OpenDocument&src=sph&src=rotIs Australians' housing really in the affinity of the US's? The data Joye presented do not support that.
Although the differential growth between the two markets in real terms is small, they are always small as opposed to large anyway in reality. However, the whole period actually shows a really remarkable differential of 2 percentge points.
In another word, the US growth during the period is only about 1/5 of that of Australian's. Looking from this point of view, one would not find it difficult to conclude that either the US is significantly undervalued, or the Australians' is overvalued. Alternatively, the starting points might be not comparable. But this can be checked from the current house income ratio.
To conclude, Australians' housing market is likely to be highly over valued, if the data presented by Joye is reliable and comparable.