overseas view on oz housing collapse

  1. Matt747
    10,494 Posts.
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    29/03/12
    08:22
    Post #: 9910192
    http://www.independent.ie/opinion/columnists/david-mcwilliams/david-mcwilliams-tremors-from-australias-crash-will-reach-our-shores-2984954.html

    ...."the demand for houses is not a result of the growth in population but the growth in, and availability of, credit. The key driver for house prices is debt. No debt means there's no house- price inflation -- plain and simple. If the banks are financing every Tom, Dick and Harry there will be an unsustainable boom. When prices start to fall, the credit dries up and the market collapses"....
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