Last chance for a house-price fightback?

Australia's housing market is in a funk and if the latest rate cut doesn't do much to get it moving the spectre of falling prices will haunt the next government.

Yesterday’s 25 basis point rate cut, though called for by many industry groups, is a worrying portent for 2014 – the first year of Julia Gillard’s second term (no sniggering, please) or Tony Abbott’s first year as prime minister.

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