slow melt in house prices to go on, page-3

LOL ! We are already BEYOND fast melt.

Classic Fairfax property tabloid. An ostensibly objective article dressed up as a spruike piece in essence to talk up against an disorderly (and inevitable) price collapse with a wishful "slow melt ??" In other words, please don't head for the exit at the same time. Please don't !

Slow melts typically occur at the initial stage of a housing bust when the supply and demand equation start to shift towards more supply and lesser demand in a gradual manner. (Slow melt occurred in 2010 - Fast melt started to happen in 2011 and gathering momentum). Slow melt may also happen when there is a price correction in a market that is somewhat overinflated or in a fairly priced market being under price pressure say in a cyclical economic downturn or recession.

When you have a decade long house price bubble being prolonged artifically again and again with debt being piled on year after year in creating a massive oversupply (see how these spruikers now have completely stopped the chronic shortage nonsense) being busted by a global credit crunch and massive develeraging where every man and his dog (many with multiple mortgages) is trying to pay down debt and liquidate assets to cash out.

Slow melt is just a fantasy.

As Wirsz said, this is the part where the whole thing drops like a stone.