Guys, I will be the first to admit, if i havent in the past, that the prices of houses do go down. The point I was trying to make was that the wholesale 40% falls and that every house would be avaialble to bought at this reduced price is what can only be described as extreme. I would expect that there will be some 10% fall and the isolated instances of 40% falls in areas that are worth investing in.
The point I was trying to make is that while we have historic average that most are using as their guide to explain the 40% falls, there have been structural changes that may make it not valid. And the ultimate point is that if people can manage, they wont sell, and there wont be a stampede of sells as many have pointed to as occuring. When we have had slumps, volume tends to dry up signifcantly as there is no demand.
To expect a situation as has occurred in the US is extremely unlikely as we have a shortage of new housing construction, extremely low vacancy rates and a growing population.
My advice is that if there is a suitable property in todays falling market that some one can afford and is what they want, then buy. it may go down further, but I cant pick the bottoms or the tops.
