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RBA - 40% house price fall, page-57

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17/09/20

22:07

Post #: 47432930
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Originally posted by Menta: ↑

Yes, Credit Supply & Demand determines the price of housing in Australia (as it does anywhere in the world at any point in history). A credit crunch would result in falling house prices. A credit contraction coupled with debt deflation would see an unprecedented housing crash.

As for supply of housing, during a downturn speculative investments, over committed owner-occupiers and empty houses not returning anything will be among the first wave to be sold. Also, many grand parents and children will be forced to move back into the family home thereby adding to the stock of available housing. Such an historic housing cycle is not only inevitable it is completely predictable.

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Do you have a time frame of when such scenario is likely to occur?

Weeks, months or decades in the future?
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