Nice One, I agree. You would have to be insane to be building a house in this economic environment. Several "bargains" available around here at the upper end where the new build cost would be $1m more than the asking price (e.g. $1.7m and now getting desperate!).
I think they will become more bargainacious before they become less.
Helium2, who are these "normal" people? I'm not sure I know anyone who has done that. Most I know who can afford to do it won't, partly because they feel that there kids should make it on their own, and partly because they feel uncertain about their own financial future in retirement. Those who can't afford to do it, well, they're not doing it either!
All you are doing by helping your kids with free money (because they haven't earned it) is prolonging the bubble. House prices have to drop because people can't afford them.
My parents rented until they could afford a house. My in-laws built their first house at the Isa - literally built it themselves (using dynamite to excavate the foundations - them were the days!). My wife and I rented until we could afford a house, as did my sister, her brothers etc. etc. AND AS WILL ALL OUR KIDS! (unless they marry someone rich).
