Actually I think we are on the same page. Ill say this once, never say the housing market in Sydney will collapse. The only reason the housing market in Sydney and Melbourne is ok is because of the international money pouring in and no other reason. If something should happen to stop that like the Chinese Economy backing off or collapsing it will change overnight. There is a lot of problems in the Chinese economy. The situation will change eventually but may change overnight you just don't know anymore because of the world economic problem.
As for rates wll you have just agreed with me in that the RBA will not raise rates because it will smash the housing market because people have borrowed massively because of the RBA lowering interest rates. When they go up and they will it will cause chaos. The U.S. Fed is now talking about rates going up for the first time in 10 years and they will raise them soon, maybe a year away but soon . As Daytr says wages are going up and commodities are going up and the cost of living in the U.S. and Australia is going up. The latest inflation figures in Australia have gone over 3% but the RBA wont raise rates until there is no other option or until the U,S. does.
The housing market is cyclic and is coming off the top right now, how long it takes to hit the bottom and where the bottom is, well its anybody's guess but it is on the decline now. History tells us over and over it will decline.
