Australian home price timebomb

Australia faces a home price timebomb says one of Australia’s leading builders -  Stockland. Australia's current shortage of 200,000 homes and an annual shortfall of 60,000, would balloon to 800,000 by 2020, if no reforms were undertaken said Stockland managing director Matthew Quinn.

According to the Australian Bureau of Statistics, house prices in Australia climbed 13.6% in 2009 alone after a decade in which they posted increases of about 170%. Mr Quinn said the average first home buyer cannot afford to pay the median house price of $485,000.