hudson on housing

http://tiny.cc/kpuMR

I don't fully understand this in the AGE, but at issue is the fact that whilst house prices in Victoria have been rising, housing starts have been falling.

Normally higher prices bring out more supply.

Why they're not now can only be because banks aren't willing to increase their exposure to the sector.

This 'conservatism' makes it very difficult for BEC, and I'm sure is why the market has been so negative about the stock.

We've been assuming that BEC have a wonderful relationship with their lenders, but I think someone's worked out a different scenario.