That's the problem with tearaway booms — the more exaggerated the run-up, the greater the pain when the inevitable decline kicks in.
Suddenly, what previously was brushed aside as a healthy correction, now has regulators and policy makers, including the Reserve Bank, concerned. While the declines so far are yet to present a threat to the broader economy, they are unlikely to be contained. Even normally cool heads are predicting a continuation of the great Aussie housing market unwind for at least the rest of this year.
That's because the housing market is being undermined by two potent forces; much tighter credit conditions and a looming supply glut.Plenty of pundits have called on the banks to just open the cash spigots and let it rip, just like before. Or put another way, return to the days of irresponsible lending.
NO-BODY-HERE-CONTROLS-INTERNATIONAL-SITUATION-,-But-preventive-steps-will-minimise-the-damage-.
IanVerrender ANALYSIS Apparently apartments have become unaffordable for the majority of wage earners. When the boom ends, Sydney 's metro will not be commercial as it depends on building 100s of residential towers around all stations. GladysB AndrewConstance asked for it
Because it is Labor's fault.
Don't exaggerate; this is no bust, it's a slight deflation. Look at the house price increases since the Howard govt, Aus is still way overpriced. AusPol