Saturday, February 03, 2007

Housing surge to favour rich

Mr McNamara said that as the three interest rate rises of 2006 took affect, the impact would be felt more deeply by low-to-middle income earners, creating weak property markets in the mortgage belt areas of Sydney, Melbourne and Brisbane.

"Sadly, forced sales will continue to create an oversupply and flat demand in these areas," he said.

The real story is that foreclosures are up, demand at high prices is down, and the boom is over. The bust begins.

(There is no 'surge', just a slight increase in upmarket properties -- largely due to more profits flowing to the top of business in the new environment.)

Housing surge to favour rich

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