what are the average deposit sizes and LVR's today compared to say 30 years ago?
pretty sure it was never the norm to borrow 90-100% back then. most people i know put down about a 3rd back then.
dual income or not, the market is driven by availability of credit. simple as that. the large gap between peoples real money and the price they paid is thin air banker credit. it might even be sustainable at these prices if we catch it early and people start paying things down, which i think is what is happening here in aust.
but do people borrow more these days because prices are high? or are prices high because in the recent past, people were ABLE to borrow more, so they did?
i think its more the instant gratification mentality and greed that has driven the price up. but just like multiplying bacteria or fermenting yeast, eventually they wipe themselves out as their own behaviours push them beyond their sustainable limit. i just hope that doesn't happen here.
