When people sell there is a time where there are more of them than buyers so they have to compromise on their sell figure.
But then where do they go? Do they disappear from Australia or do they move to another house?
If they rent and add pressure to the rental market they push up rents making investment more attractive.
You have to remember it is not discretionary spending for most people. There is only a small percentage that can share with Mum and Dad or other families.
The only way property prices dive is if there is a lot of vacant houses. We saw this in Brisbane and the Gold Coast when the Victorian exodus reversed and SE QLD was left with heaps of empty houses and plenty more in the process of being built.
There are not enough new houses being built and there are not enough existing houses and on top of it all we are pouring more and more people into the system.
Really, truly, please ONE THOUSAND times please, think about it. Don't just stop your thinking at distressed sellers.
