watch the property market this weekend, page-50

People - the price of Real Estate is linked to supply and demand - this is of course influenced by - the availability of funds - the location - the number of houses being built - supply of land and lastly the cost of building

As costs probably won't go down significantly - land developers and investors will put things on hold - also people are scared that any reprieve in interest rates will be short-lived (basically they don't trust the RBA)thus the number of dwellings being built will slow and the shortage of accommodation across Australia will grow

Net effect - initially prices will fall maybe 10% whilst those who need to sell do so - to offset this though rents will increase quickly and substantially as people "fight" for somewhere to live - this in turn drives people back into the market and prices recover - not rocket science - seen it all before

Clyde

Just my own ramblings really