6  BIS central bankers’ speeches  Graph 5  Graph 6  None of this can be taken to say definitively that Australian dwelling prices are “appropriate”, or that there is no possibility they will fall. It is a very dangerous idea to think that dwelling prices cannot fall. They can, and they have.
The point is simply that historical or international comparisons, to the extent they can be made, do not constitute definitive evidence of an imminent slump. At the very least, the complexity of making these comparisons suggests we ought to look at some other metrics in thinking about the housing market.