Victoria hits 20 year low sales.
Less than half the sales of September 2009.
Same New listings as September 2009.
20% higher total listings than September 2009.
Does this sound like a strong market?
This is all happening with extreme low interest rates, and with a fairly robust economy. SO what's up? Basically things are just too expensive.
The wealthy can and do still buy. They aren't adding up the mortgage and the taxes and wondering whether they are paying 60 or 75% of their income to buy- which is why the average and median prices are moving up, even as sales collapse.
That doesn't mean that sales cannot come back, some RE agents expect them to, but if they don't and sales keep heading down - prices will follow.
This mortgage broker's blog is the one mentioned in the news report and worth reading. The 21st September entry is the one to read: