Housing will go up, thats for sure, but i think there is more change of a 30% or more dip before them over the next 3 years..
Somone correct me if I am wrong.. you can only pay for what you can afford.. if you can only afford to borrow $200K then thats your limit.
Subprime is a 4 year monster, due to the honey moon period, which means there is 2 - 3 more years of bank loss's to come.. which makes credit more expensive for the rest of the world..
that being the case, statistically there is a good chance interest rates will go up more..
If no one can afford to pay these house prices with higher interest rates to buy the house's.. and people with mortgages cant afford to keep them.. how will house prices remain the same?
In low interest rates there is low unemployment... when interest rates go up employment suffers and unemployment goes up.. putting more people in distress.
if they are saying there is 900 odd thousand people in australia in mortgage distress.. and another rate rise or two will tip them over.. even if 1/4 have to sell.. that will kill house prices.
My question to the optimists is, what will hold the price up? and please dont tell me imigration.. there is about 21mil people in Aussy, thats the size of 1 big city in america and house prices are much cheaper there..
if its too expensive to buy a house here, migrants will just migrate else where..
I just cant see how a house price correction cant be avoided..?
