end of the line for the speculative mania, page-221

"Australia property market is funny. Interest rate rise creates property boom & interest rate cut creates property correction. Next move as bears are predicting "rate rise"..... what will happen to property prices on the back on economic recovery? I'll ask Hawker, he got more logic than all the bears here... What will happen ?"

Thanks Forged. In Melbourne it's a funny market, inner is booming and outer is dead. The future could be quite tricky-if demands for exports decrease or the demand for the AUD in general reduces we will have inflation getting outside its target, but at the same time unemployment would be increasing and the economy weakening.

The biggest question is what would the RBA do in such a scenario? IMHO they would most likely be forced to keep rates low despite inflationary concerns?

With that in mind property will probably be ok...not withstanding a black swan event...But baring in mind there are lots of markets in the market.