really, who cares what some dude employed by the RBA said.
You should all be smart enough to get hold of market data on housing and read it.
Housing goes in cycles it a well known fact, and its also well known cycles last around 10 years - ( cycles means that prices go up and down over these periods, 2 years is not a cycle!)
A house is a house - FACT - it is not a growing expanding company. there for its value does not change unless its position becomes a prime sought after suburb.
House prices in australia historically are 3.5 years wages. FACT
For some reason - which no property spruiker has yet explained on here, house prices doubled in 4 years. which is totally abnormal.
If house prices go in cycles, and the norm is 3.5 years wages, and the current is 7 years wages.. whats going to happen next?
if you think prices wont fall, then surly you can explain why house prices doubled in 4 years? and why that bubble in the market wont correct.
