new home sales fell further in march, page-20

Kincella,

Yes I remember those arguments and like I said they tended to do it on Sundays.

Now let's paint a scenario. Let's say that it is 2012 and properties in all major capitals have risen as we expect. What will happen?

Will the renters say "OK, OK, I was wrong, I wish I had listened and I would have paid far less for a house to live in".

No of course not.

What they will say is "Well NOW they HAVE to drop because NOW THEY ARE WAY TOO EXPENSIVE"

And THAT is exactly what people have been saying for as long as anyone can remember.

It doesn't matter what the price is or which decade you look at. There always were and always will be people who say "too expensive, I'll wait for prices to drop, shouldn't be too long now, I'll just keep renting".

Just as there always have been people who know that we have ever increasing demand for something that is limited in supply.