it is jobs & wages not shortages that matter

Housing shortages and affordability issues don't matter a toss when it comes to property prices.

Whilst people have jobs and earn reasonable wages,they can afford to continue paying high mortgages.

They may have to make sacrifices and maybe take in a lodger or maybe even rent out their homes and move back in with their folks.

There are lots of ways to hang on to a property if you are really determined.

This can and will keep a bid under house prices for awhile.

The problems come when people start losing their jobs.

It can start when people have to accept lower pay or less hours.

When you have the sort of debt levels we have in OZ,it doesn't take much to set off a property crash.

You can argue black and blue that property always goes up,but in between times there are some massive corrections/crashes.

We are about to enter one of those periods in AUSTRALIA.

Watch the RBA very closely.

If they hold again next month,the next move will be down.