inflation, the future & the 1980s, page-7

One big factor affecting house prices is available credit.
If banks withdraw mortgage lending prices will fall.
Something that the commercial property market is struggling with today.
Back in the 90's when we had that recession after the overheated 80's some Aussie banks failed and some were recapitalised.

At the moment local banks say they are overweight commercial and foreign lenders have withdrawn from the market.
Small to medium enterprises in the business community are struggling for finance too.
Large corporations have been issuing equities to raise capital but smaller businesses if they can get finance are having to pay more. The banks obviously see them as a riskier proposition to home lending.