Moke and Macdunk...you guys are wrong.

I see it the other way. simple...I thought you would have thought about it.

Increased deposits is the same as 'tightening credit.' There will be less 'supply' of people buying and therefore further downward pressure.

On the flipside, you dont 'need' that 20% deposit. My brother just bought a house with 10% deposit and could have been as low as 5%. You just have to have a low equity fee ($4000 or something which was only 1% of the average house price and now they have fallen average 8% so still saving 7%)..or you have to have a slightly higher interest rate.

Look at the facts before posting.

Many home buyers are now putting off because of future expectations of housing drops.

Macdunk, you say house prices cant fall much further because of construction costs. Well...construction costs are coming down and sections are also coming down. Paying $200 k for a section is just ridiculous! Plenty of downside left....

My pick is prices wont 'crash', but the RB will make them stay stagnant for a long time till they are inline with long term averages. A crash would jeopardize our financial system...and it will be avoided as we have had foresight with whats gone on in the states and rapidly falling house prices.

Increased deposits will also become part of the norm for borrowing...and so it should. I almost expect it to be put into regulation.

UD glad we finally agree on something. Maybe PPP also?

.^sc