RBA warns housing investors over fall

The Reserve Bank governor Ian Macfarlane has warned that house prices will fall further, leaving heavily geared investors facing “a lot of personal distress”. Macfarlane said he didn't see a crash coming but welcomed the end of the housing boom. He urged intending home buyers to take their time and drive harder bargains. Buyers' representative Morrell & Koren said vendors are now having to meet the market, rather than buyers rushing to keep up with it. Macfarlane said the end of the boom probably won't greatly affect the average owner-occupier but it will affect the property investor. Melbourne and Sydney's weekend auction clearance rates continued at below 50 per cent, with Melbourne at 49 per cent and Sydney at 47 per cent.