Housing Fever in Australia 2020–23: Insights from an Econometric Thermometer

Abstract Australian housing markets experienced widespread and, in some cases, extraordinary growth prices between 2020 and 2023. Using recently developed methodology that accounts for fundamental economic drivers, we assess the existence degree of speculative behaviour, as well timing exuberance downturns these markets. Our findings indicate behaviour was indeed present six eight capital cities at time over period studied. The sequence events this nation‐wide bubble began Brisbane market concluded Melbourne, Canberra, Hobart following interest rate rise implemented by Reserve Bank Australia May 2022. As March 2023, Sydney, Canberra had broadly regained stability, while Melbourne's return to its normal state is more gradual. In addition, over‐corrections against fundamentals are evident Brisbane, Adelaide, Darwin Perth. For regular updates on markets, readers may visit authors' website https://www.housing-fever.com .