'Disingenuous' figuresHowever, as Australia's largest home lender, the Commonwealth Bank has one of the biggest vested interests in house prices rising.
3.5 is a healthy ratio, although very desirous areas can sustain higher levels indefinitely (San Francisco, CA, for example). 9 is just crazy.Many analysts say that has led the bank to use misleading figures and comparisons.If you go to page four of CBA's presentation and read the source information at the bottom of the graph and table, you would notice there is an additional source on the international comparison - Demographia.However, if the Commonwealth Bank had also used Demographia's analysis of Australia's house price to income ratio, it would have come up with a figure closer to 9 rather than 5.6 or 4.3.
How do you know a banker is lying . . . ? :-D Yeah, you know the punchline.