Housing market is artificially kept at this level by:
1. foreign investors - many empty units in Mel and Syd, kept purely for the steady price growth, we can expect selling once the growth stops
2. immigration - steady flow of 200k/year + temporary and student visas, government can't justify it with projected unemployment figures over next 2 years
3. low interest rates and easy lending - interest rates are going even lower, but lending conditions will tighten, banks not keen to take risk
4. rental properties as investment with negative gearing - with less demand, rents will go down, and with low interest rates, negative gearing doesn't pay off
Maybe more first home buyers will be able to afford a roof after all, many have given up already.
Or it will continue? 60k / year for 20 years + 3% interest for a modest house in Syd suburb? For a couple on 90k salary. No surprise people start drinking
