This is a period of caution and stalemate. The potential sellers...

This is a period of caution and stalemate. The potential sellers are not yet in panic mode, plus they are blinded by the RE propaganda about how much house prices have risen and how much more they are yet to rise.

The buyers (and they are worse than dumb to "even consider" buying at this level) are completely maxed out. Now the banks are tightening LVR, suddenly there is much less cash in the system. The agents tells the seller your expectation is too ambitious.

The seller tells agent you piece of sheet, you're trying to condition me to discount, I thought my house went up X % last year according to your kind at the REIA.

Angry seller is in denial and puts on hold any plans to sell (as he/she is indoctrinated by the likes of BIS Shrapnel that prices will rise 10% at least in 2010).

Seller sits around for a few more months, then armageddon comes to town and when he decides to list, he suddenly discovers "for sale" signs have sprung up across the landscape. A bit late...really.

Warnie, nationally the trickle of listings will turn into a deluge, then into a flood and finally into a tsunami.

But then again in Adelaide, it's hard to model on such a small scale.