The weak update on major renovations in Sydney is just one among a plethora of indicators pointing to NSW having slipped behind the pack.

Outside of NSW spending on major renovations was softer, but not substantially so at the end of 2005.

Sydney is acting as a major drag on the NSW economy and the weak update on major renovations is just one among a plethora of indicators pointing to NSW having slipped behind the pack.

With the exception of Sydney, which is still very weak, there is no feeling that a substantial pull-back is in the offing for the housing industry over the next 12 months.

At this point in the property cycle there is a much larger group of long-term renters than there has been for 15 or 20 years.

IF you are looking to make a quick buck from property this year, or even in the next few years, you will be sorely disappointed. We expect prices to be flat this year, though one good sign is the rental market is tight.