"Nevertheless, he says, there probably won't be many forced sellers in the housing market. Instead, turnover is more likely to drop than the price you pay when the auction hammer falls."
There might not be many forced sellers but there will be some, as in longrunsthefox's example. Surely that then helps lower buyer's expectations for prices and drops clearance rates further. The ones that still have to sell, highly geared investors getting out of loss making investments or retiring boomers who can't use negative gearing anymore have to accept the lower market price and a new benchmark is set. I'm no expert in these matters, but that seems logical to me. Please someone, tell me that I'm wrong.
