In case you are not aware, I saw these 2 articles in weekend Sydney Morning Herald about falling house prices which I would suggest any one interested in property to have a look: "Heads in sandcastles" and "House prices head south, north and east".
Some information from the articles as below:
"Amid a pile of bad economic news, in 85 suburbs this year, from Seaforth to Strathfield, the median home sale price has exceeded $1 million. "
"The AMP Capital Investors chief economist, Shane Oliver, warned that Sydney property was about 20 per cent over-valued."
"In the US the ratio of annual income to house prices is about 3:1. In Australia it is about 6:1."
"Home owners in Clovelly and Bronte put houses on the market around Christmas and immediately rejected generous initial offers. In the past month, both houses sold for 10 to 15 per cent less than those December offers."
"Last week, property and building forecaster BIS Shrapnel provided some comfort for home owners, proclaiming that Sydney house prices will rise 18 per cent in the next three years. Others say the market is ripe for a tumble. Either way, the next three years will test the very Sydney belief that people can get rich by buying and selling houses among themselves."
"This year, US house prices have crashed 15 per cent, and recently, the fall has accelerated towards 25 per cent. But if the US is the land of the housing bubble that popped, what is Australia?"
Have a read yourself and tell you what you think??
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