real estate to hot up on stock market depressd, page-37

House prices is the U.S. did NOT fall after sub-prime....they've been falling for a good 1-2 years now. Sure, people defaulting on home loans did contribute to the current crisis, but its untrue to think it was the main reason.

don't believe me?...here's proof

http://bigpicture.typepad.com/comments/2006/05/real_estate_dat.html

chart says mid 2006 saw the start of the fall....way before sub-prime.

So why did they drop?....the same reason they always do---> a property boom will only last as long as the market will allow it....that is, buyers will either get priced out or eventually wake up to over-inflated prices....of course, screwed-up lending practices (i.e. sub-prime) have made things even worse.

As for sub-prime affecting Aussie house prices?....get real....Australia is experiencing an immigration boom, population boom, mining boom, strong economy....lots of money around, plus lots of people seeking somehwere to live and unfortunately, not enough property to make everyone happy....you do know that each state is falling well short of building enough dwellings to sustain its population explosion.

The way I see it, too many people are willing to pay huge prices for their little slice of home sweet home....so why do they do it you ask?.....because 1) they can and 2) because owning your own home is still the great Aussie dream....even for people who dont really have the money, the dream is so over-powering that it drives them into huge leveraged debt....you'll never change this mindset...oh yeh, greed is the other huge factor....more more more and once again, not enough property go satisfy.

And prices are only going to get worse folks...yes they are!!!

So the question to all the whingers out there (I see and hear them everywhere - work, get-togethers, online) who complain about property and unaffordability and interest rates is -----> what are you going to do about it?.

now that's the million dollar question