More Gotti rent seeking today:
Fear is suddenly driving the actions of a large rump of Australians. It is seen most clearly in the housing and apartment markets of Sydney and Melbourne. To a lesser degree, that housing fear infects most other mainland capitals.
…For years people thought lower dwelling prices would attract first home buyers. Some are entering the market, but the bulk are too scared because they can see that their friends have already lost the value of their deposit in the slump and the regulation authorities are helping to force banks to drive prices lower. The first home buyers can see a vicious circle developing as the credit squeeze lowers prices and those lower prices reduce the amounts banks will lend. They hold back their buying.
