most areas of australia have already taken a hit but a gradual soft decline since last xmas ...
now what i expect to happen in 09 is a more sustained decline as loan facilities dry up because banks are no longer lending to those with very low deposits..
they have already chenged their tactics quite some time back with lending 100% of the house price...
as far as im concerned and ive said it many times on h/c..the market will not have another major spike until 2014..with a small spike in 2012 then settle again...
the nature of the cycle just like shares..
BUT: this time as an added bonus we now have issues with worldwide liquidity between banks and countries like the US basically bordering on bankruptcy to contend with..
as the politicans say we are not immune here...i think the politicans are trying to gloss things best as they can but i can only see the housing market taking a solid hit but reasonably gradual over a few years...
buyesr will disappear unless the sellers meet the market...many will have no choice but to declare bankruptcy or walk away from their homes making the market quite unstable cause banks themselves will just flog off the property for below market prices to cash out and take a loss.
if anyone feels the housing market will reverse its current trend id love to hear something constructive as to why??
