When buyers turn cautious and sellers become increasingly anxious the flood of houses hitting the market will become a tsunami. First it'll be the over-leveraged speculators then general investors (which reached record numbers during 2015) followed by over-committed FHBs who entered the market with little or no deposit wanting the debt monkey off their back quickly before they receive a letter from their bank demanding a LVR review (which will set-off the next phase of forced sales). But as buyers decide to hold off in the face of falling prices the illiquid nature of property will further feed the deflationary cycle.
