Is this really happening ?

Especially the last paragraph.....If this becomes wide spread, why would you accept 4-5% rental yield ?

>>>>>>>>>>>>>>>>>>>>>

From the SMH (21/2/09):

Clearance rates in the east and lower North Shore are down on the same time last year.

There have been 400 auctions so far this month, the lightest February volume since 2004.

February sales have averaged $563,000. The cheapest was a Willoughby studio mortgagee sale netting $142,000.

Last Saturday agents secured the sale of 66 per cent of their 164 listings. The dearest sale was that of a $1.83 million six-bedroom Strathfield house with a new swimming pool. It last sold for $1.77 million in 2003 and potential buyers were advised during its initial January marketing to expect above $1.5 million.