The housing market here in Australia is all over the place but the overall tend imo is down.
The low end, new start housing market is up as a result of historically low interest rates.
The high end is suffering and suffering badly due to a glut on the market as many silver tails have to sell in order to cover their losses on the market.
If we see a rise in interest rates within say 2 years, and that is very possible, many first home buyers may find that they have a tiger by the tail and will be forced to sell as the repayments increase and they are simply unable to meet those payments.
In that event, and without any recovery in the share market, the danger is that here in Australia we may see a near mirror image of what occurred in the US housing market with house prices across the board going south.
That would make any broader recovery all the more difficult.
Btw Went rabbit shooting on the weekend and got a great haul. Rabbit stew tonight. Hmmm I love rabbit.
