I agree with Eagle but we also have to consider net migration, which in turn is driven by employment prospects.
https://www.theguardian.com/austral...rce-immigration-debate-is-about-to-get-louder
The above link includes some very interesting facts ......... but at the end of the day ......... while net migration remains strong property may remain on the verge of unaffordability in capital cities.
Just about unaffordable monthly repayments are defined by interest rates, purchase prices and income spreads across locations and professions.
So ..... if interest rates go up ...... purchase prices will come down
to a new point of near unaffordability. That is what we are seeing now and it's called a correction (not a collapse).
I've been thinking about Trump's trade wars. What if local employment prospects were to hypothetically taper off, starting with professional job prospects and then followed by service industry jobs?? Immigration can be fickle. Employment is driven by demand for products so if Australia is hit by falls in Chinese demand for Australian exports the deck of cards would then collapse IMHO.
Back to the Guardian article above ..... and noting that India is Australia's new prime source of immigrants ..... perhaps we should also monitor India's economy before predicting when the crash will come.
cheers
