Everyone seems to have an opinion on what the prices of the Australian housing market are going to do.

Any which way you cut it though, the market is flattening and world economics uncertain.But do I think its will all collapse…..no not really.

The 2 major housing markets in Australia have had a ridiculous run. Sometimes when a market gets overheated it does need to correct, sometimes growth need to pull back from a 5 year average of say 12%, to a more sustainable average.

That doesn’t mean the sky is falling. It just means you need to be defensive.

Some markets have seen a small slide backwards of 2-3%, while other markets have been flat. Interest rates are in a state of flux and the government continues to tinker with the tax system.

Here’s why I think its unlikely that the market will crash:

• No economists are predicting a major recession
• No economists are predicted massive unemployment
• The RBA is unlikely to allow double digit interest rates
• Population growth is still on the rise
• People still have to live somewhere
• Economy is generally healthy

Some investors are cashing out and holding money in reserve because they anticipate massive opportunity down the track.

When others are fearful, it is a chance to find opportunity.

Here’s to your investing success.

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