one thing i will say is that a few colleagues who were looking to upgrade their homes (and we are talking $2m Melbourne properties) have put this all on hold due to ot simply interest rates, but the fact that the share market has wiped some of their wealth out, and, in terms of employment/bonuses it cannot get any better.
I think employment will bein to turn thi year. It has been strong, however, it can only get worse. Gee, those in the financial sector (who tend to drive prices in the blue ribbon suburbs) are the ones most at risk in trying to keep their jobs. I also know of 3 people who have sold homes over the past month, and each one sold below their expectations.
My guess is we will see a drop of 10-15% this year.
Migration is BS as well. It can change so quickly. If unemployment starts to increase, this will dry up and then what will drive prices.
I also remember BIS saying property would fall by 20-30% about 3 years ago???? So they surely would be the worst forecasters of property performance in the country!
