damien83, you won't often find me quoting MSM, I prefer to stick to quality data to form my view and to inform others of trends, but in this case I will need to make an exception.
You won't find prices falling through the floor immediately, it will take some time for sellers in the lower price brackets to realise that they aren't going to get the prices they are asking and lower their expectations.
From the data we have available it will probably be difficult to even spot this trend early on in the piece, but when I see articles like this one stating there has been a 250% surge in 100% loan applications (which are unlikely to be filled) and a significant rise in the median price of Melbourne's auction results, it all points to lower priced property not selling because the finance is no longer available to the buyers who would have purchased and other buyers that may have bought this year already bought last year (they bought their purchase forward due to the FHOG boost ending).
But hey if you want to live in the dream world and ignore all the signs that are being dropped in your lap then be my guest.
