Put interest rates discussion in this thread please - joni

The ABS today released figures today detailing a 4.2% jump in house prices in the last three months. The year-on-year growth for the 8 capital cities was 6.2%. The actual figures for the capitals are (after jump):

• Darwin +12.3%
• Melbourne +8.4%
• Canberra +7.8%
• Sydney +5.9%
• Brisbane +5.6%
• Hobart +5.4%
• Perth +4.4%
• Adelaide +3.7%

Why have they increased by so much in times of economic uncertainty? Is the First Home Owners Grant fully responsible? Or is the shortage of housing a factor?

Now what was it that Associate Professor Steve Keen said about house prices falling by 40% and the recession being unavoidable?