okalie...dokalie..good to see your not scared justis..
What will it take for a price correction to occur based on listing stock..? you think 1-2% of all properties by one owner type is insignificant and matters not?
Let take Perth as an example since it probably the worst performing city currently. Perth is a city that has gone through a major resource boom, has the highest GSP per capita in the country and probably the highest average household incomes in the country. But what is happening? a housing downturn...
Why? a lack of buyer appetite, increase listing stock..by how much? by an insignificant amount?
What would it take for corrections in other cities..namely Sydney..a slowing in buyer appetite and an insignificant level of stock on market of just 3-4% of total housing stock at any one period. The rest of the owners +95% can hold onto their properties and hope that a further "collapse" in buyer appetite doesn't occur...just like the +95% of what Perth owners are currently doing..
The opinion that most people won't sell and this will mean no "collapse" in prices is I believe flawed it doesn't take much, should +5% of stock be on market at any point in time and the other 95% hold with little buyer appetite, i reckon you can expect some major downward pressure on prices..if just 3% can cause a correction, +5% will potentially cause a "collapse".
Speculators beware..
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