[QUOTE=Darken]Personally I think the market is going to drop back further as soon as Ruddy removes the FHOG because who will be buying houses then! Only those that have money! But money now is tight![/QUOTE]
I think the govt will drop the FHOG for existing homes, but keep it for newly built homes as to further stall the new home construction industry will only cause more unemployment. In order to keep employment up they must promote new homes to be built.

Of course prices wouldn't have been pushed up so high if it weren't for Allanah MacTiernan and the WA govt at the time restricted crown land sales. This forced more people on the same amount of land, making what you did have more valuable, and sprouted an unpreccidented numbe of sub-divisions to existing lots. Lo and behold, govt income from stamp duty became a huge money spinner. Also govt spending was down as they no longer had to fund huge amounts into providing new infrastructure for new developments as the 4 corridors weren't being extended. Urban sprawl became urban squeeze and the govt got a double bonus; less expenditure, more revenue.