my housing price rant

The housing correction predicted by the many bears in this forum never happened to the joy of the baby boomers who post here. The reason it never took place is that employment in Australia has been so strong.

However, the baby boomers should not be celebrating just yet. As a correction never happened in Australia, it means one is still yet to take place. Moreover, when the housing correction comes it will take our big banks down with them - given our banks have been the biggest property bulls out of all the banks in the world.

In addition, with the banks gone expect the Australian economy to be royally stuffed for many many years, house prices will be gutted in Australia long term – possibly worse than in any other country. Australia’s high property prices have not been a miracle they have simply been the product of high demand and restricted supply. When the banks are stuffed they won’t be able to feed the demand for housing (no matter how much people want to buy) also governments are working to fix the supply side – as the supply restrictions in Australia are only artificial, not based on any shortage of land (Australia has plenty of land.

So to those wanting to buy a house, just wait. Wait until the correction comes. It might take five or ten years. Just be patient because you will pay about half the price you will be paying now. For me I will be waiting until unemployment reaches around 10% I won’t be tempted to buy any earlier.