"Hot Coppers resident bulls make mention of 'supply and demand' quite often without making any reference to a buyers ability to pay???"
"What gives?"
Ah...the triple question mark...sign of the Gen Y in communication.
Anyhow, if hundreds of thousands of retirees and down- shifters are selling their homes for 600K-800K and moving to another location and paying 300K-400K I think they have a very strong "ablility to pay," don't you?
If long term investors have a dozen house's or so and the capacity to borrow another 2 MILL $AUS then they also have a very strong "capacity to pay."
"But these are a very specific examples" I hear you say.
Exactly. Its called micro-analysis. Thats what investors do.
Thats why we are not interested in National Prices or National Wages or charts/graphs/negative University Professors that are related to them.
