If you look more closely at the results, supply has dried up a lot. ie melb had the lowest amount auctioned last weekend (not being a public holiday weekend) for 10 years. Using supply and demand analysis this is holding prices at a reasonable level.
Sellers are smarter this time around and there are a lot of investors that are holding their properties. As a previous poster said, transactions costs make it too difficult to get back in and be in front.
My view is the ones selling are in dire straits and couldn't afford to buy in the first place or they are selling for emotional/practical reasons not financial.
I currently hold several investment properties and am appreciating the increase in yields not complaining about the decrease in values....
