"I actually bought another property today......its in another post.....so I buy anytime.....and as they are apparently expensive now I must be crazy I guess."
I'm sure there are always bargains to be had if you know where to look.
"even if they did drop 20% ........wouldnt there then be more buyers on the market picking up the houses that have dropped 20%.......therefore driving demand.....therfore back to square one."
I think it's more complicated than that - if that were the case then prices would never change. If prices begin to drop people become less likely to buy, after all who wants a negatively geared property that is decreasing in value? Where it stops depends on the prevailing financial conditions I suppose. If we follow the US into recession... well, you get the idea.
"And if prices drop 20% the mortgage stays the same.....makes f all differene to your repayments......so who cares."
For you it is perhaps not an issue, assuming you are not geared up to your ears. For first home buyers with a mortgage 6 times their wage it's a different story.
