It's definitely headed that way. Things here are taking 2 years to sell and it's ridiculously cheap here in tassie compared to the other states. Our home has been on the market for nearly year a we've dropped the price by $25,000 from what we paid for it 18 months ago.

My SIL has her house on the market in Pomona (qld) and it's a beautiful house - no buyers.

My mum has a great block of land for sale in peachester (just under an acre) for the same amount of time as ours has been and relatively cheap at $269,000 - and yet again - no bites.

Its definitely pretty crap in the market at the moment and I don't see it picking up any time soon.