Tangent - just look at Hampton. Could not get a 3 bedder house for under a million 12 months ago and now there are several on market.
Problem is that the job market is getting hammered in Melbourne - just ask any recruitment agent how tough it is. Couple that with ridiculously high prices and things will either stagnate or go down so therefore for any prospective buyer why not wait until things become clearer.
Personally I can see a 10-15 percent drop from where we are now and over 18-24 months before stagnation and then slow growth for 3-5 years. Effectively by 2018-2020 getting back to the peak in absolute terms. Just my thoughts And opinion.
The worry will be when this governments deficit starts to blow out with decreasing mining tax revenue. What then - increase taxes, cut social security or decrease allowances on negative gearing. All this is within the next 12-18 months in my opinion as chinas slow down becomes the Australian govt Achilles heel as tax revenue from miners diminishes.
