I don't expect 40% falls....I do expect stagnation....at best as the recession could be here for a while yet and significant tax increases are in the medium term pipeline. There were 3 conflicting currents: lower interest rates and first home owner's grant on the positive side, and rising unemployment on the negative.
The first 2 have only caused property prices to hold steady. Interest rates are close to the bottom. The grant looks like being scaled back. But job losses haven't really hit home yet in my opinion.
There is one other small positive in that the sharemarket looks to have bottomed out so there won't be as many distressed sales at the top end.
Lack of stock has also helped values for quality properties which do come on the market. So I will wait for spring if need be and let's see what happens when there is more choice. I can't see any possible catalyst for price rises between now and then, can you lord elpus?
If they don't fall, so be it. I will buy the right property and enjoy it for the long term regardless so price isn't everything.
