One i've experienced recently, is the bull mentions enthusiastically that the properties are being 'tightly held' i.e. no one is letting them go for cheaper prices.
He was referring to the eastern subs of sydney. There may be some truth to this, but to me this indicates the risk is to the downside. If people have to resist selling at lower prices now, looking at our economic outlook and the factors that could fuel the next capital growth boom don't look like they will alleviate this situation any time soon.
That means that once it slowly begins to sink in that unless you are positively geared to the hilt on an IP, or you can afford to pay that giant mortgage while the capital decays, then people will start selling and at lower prices.
The first real evidence I saw of this was that property I mentioned the other day in Seaforth, that last traded for 1790K in 2009, asking offers over now 1590k. As I calculated in my post, the cost of renting this place since 2009, about 150K. The cost of saying you "own' the place using a 1000K mortgage, including capital loss to inflation, stamp duty, but not rates or maintenance or cost of marketing, was 650K. So being able to proudly state that you owned that house over those three years will cost these vendors half a million in cold hard ones. That's if they can sell for 1590K.
