polling for housing bulls or bears, page-15

Property prices - bear.
I own a property in Sydney.

Do not under-estimate the love affair that people still have with property. It never ceases to amaze me. Yesterday, I was speaking with a neighbour who is itching to buy a property, he said prices have dropped (inference that they are now a bargin) and his way of thinking was they will snap back pretty quickly.

I know quite a few people trying to sell now and they all have the same story - no bids at all. Their question was 'What do we do, drop the price?'.

I know some people who have bought and are capitalising part of the interest. They approach was to sell (to a greater fool as the theory goes) some time in the future.

There is a lot of talk about the rental crisis, however there are heaps of single people in 3-4 bedroom homes.

The gap between renting and paying off a home loan is too big. My best guess is that rents will rise and Sydney property prices will fall. This fall will be over a longer time period than everyone expects.