I was speaking with an agent who said auction clearance rates were dropping each week and that properties in the northern suburbs will be hit hardest (compared with blue chip eastern suburbs).

What suburbs do you think will drop the most over the next 12 months?

Anywhere I describe as 'the land beyond the trams' where you have to drive to live.

EVERYWHERE .................................................................................................................................

I think it's pretty obvious that the hardest hit suburbs will be the lower class ones, with the highest geared homes. Northern and Western suburbs will probably be hit the hardest. BUT as DArgy suggests every household in Vic (and Australia for that matter) will sufer AND suffer more and more over the next 12-24 months. We havent seen the hardest of this economic crisis by a long shot.

One interesting thing to note is how many luxury cars are now on the car classified sites. Luxury items are the first to go in times of financial crisis, so perhaps the wealthier suburbs are being hit quite hard as well. One theory is that wealthy people have high proportions of stock, and higher gearing. As the stock market crashed, the margin calls come flying in from the bank, and the first thing to go is of course the nice car. Food for thought!

AJ