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Add to this reduced interest rates and improved housing affordability there to stoke demand, summer encouraging buyers to the market and school zone / job transfers over the new year may all lead to higher sales values.
Add to this 60-70% of overseas debt being rolled over in the next 4-6 months which banks rely on for 50% of their funding combined with a 'frozen' credit market and you will see interest rates rapidly stop falling.
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Since Shrewd Crude is looking a few years out it might be worth pointing out that the market is not a lot different to where it was two years ago. Back in Jan 07 when he first posted the median price was $327,000, at Oct 08 its $335,000, He would be a lot better off now than then as he still has increased value in his property, he would have paid two years worth of principal off (not much – but it helps) and his interest rates will have dropped a third giving him a pile of extra cash in his hand. Instead he’s lost 50% in the share market, now needs a bigger deposit and he has to find more cash to pay a Valuer.
Thats rubbish. Why would you wish yourself to have bought one of the most illiquid assets with what we know today of the financial crisis. If you want to offload that asset (house) quickly for personal reasons you would be stuffed. You would lose big time. Those figures are skewed, as you know. House sales have declined massively, being down over 50% while higher priced sales have faired better, thus the median hasn't dropped to the same extent as whats being shown...