It doesn't matter how many quotes you make from these "usual suspect" sources and how many postings you make at the Newscorp or fairfax news websites to cheer lead the housing cause. It's the end of the road. The RE folks know it. They are starting to use their favourite term "unsustainable", really another way of saying the "F" word.
We are not talking about what may happen in a few years time. This unravelling is happening as we speak. In just a few months, smart folks will realize that the hot auctions of the past 3 months also included many tens of thousands who actually SOLD. Why did they sell (do you think they are all trading up ??) I doubt it.
It's called jumping ship at the peak of the cycle. In other words the clock struck at midnight. A bit like the smart dudes who sold their share when the ASX hit 6900 before buying again at 3000.
The Aussie housing market is completely CORNERED. The government is neck high in debt with a deficit of herculian proportion. The RBA is wetting it's path knowing every economy that even had a relatively punny bubble compared to ours ended up blowing up leaving a sick banking system and a battered economy.
No more grants, no more cheap money (soon to be no more readily available credit as the banks start to freak out - in other words CREDIT RATIONING on mortgages).
Interest rates was cut to an emergency 60 year low of 3 %. 60 years ago, most of your parents were even born. Now the RBA says ooh ooh....we over steered this super tanker into an even bigger iceberg.
This is precisley why Rudd wanted to use the ETS as a trigger for a double dissolution early election. The longer he waits, the housing collapase will turn him from the cash giving Santa Clause to the housing crash villan.
