This time I am going to analyze a housing bubble that Australia is currently facing. I did it once to model a Real Estate (RE) demand in Israel and wanted to extend it to any other country, which RE market is going through the similar behavior. Well, apparently, it is going to be Australia.
Google Trends is exposing unique data of demand changes and as a result various micro and macro-economic derivatives. I tried to use this tool to model RE market dynamics in Israel and later in other countries and found interesting behaviors of different markets. In this work we will try to understand a bit better reasons for growth in RE prices, we will try to understand better the market, compare RE markets models in different countries, will try to get tools to predict the market based on different scenarios, we will see the RE price hysteresis and will try to explain it.
First part of the work is only exposure of data with no/minimal conclusions or analysis.
Enjoy! Continue reading