Affordability will trigger the downturn and we are hitting that critical tipping point now.
The last 20 years has been a great ride, no doubting that, and anyone who missed out probably still can't sleep at night.
But with first home buyers at the lowest levels since records were kept, with interest rates on emergency levels to keep the economy afloat, with wages vs house price ratios at record highs, and with the bleak outlook for growth in capital and yields .... the decks are stacked in favour of a downturn.
Rising unemployment and wages growth behind the inflation rate are only a small part of the much larger issue - young working class families cannot afford a house, and those that can stretch that far, have taken on a lifetime debt only to be underwater for decades.
I was still a teenager when I bought my first house, 3 beds on 750sqm, but if I was just starting out in my job at that age again now, I wouldnt even be able to afford the block of land.
