My take on the situation differs a little from general consensus. The world is still printing money, We in Australia still have low unemployment, while i still see prices coming back some more,i don,t see 2001 prices unless the whole world economy and banking system collapses . The cost of building just a house is now more than what a property cost in 2001 . Developing blocks is still getting more costly. Welfare payments are still going up. In 2001 the cost of buying a house was roughly the cost of what it would cost to rent minus the rates insurance maintenance. I see housing coming back to the level where repayments are roughly the same as renting. At 350 to 450 a week rent then a house in Perths outer suburbs may fall to around $275 -350 000 for something half decent and livable. Of course there will be bargains in the offering for forced sales if the manure really does hit the fan, but unless welfare payments are ever altogether withdrawn then prices back to 2001 levels probably wont eventuate as at current rents then all property would be massively positively geared 2001 prices.
