The housing market like the stock market and commodities market moves in cycles.
Housing is typically a fourteen year cycle with the majority of that 14 years being positive returns but 18 months to two years being significantly negative in order to return it to the median up trend as ultimately housing always goes up
If you have no need to sell and it's positively geared and have a long term view then no need to panic.
This cycle is over extended so the crash should be quite brutal but more likely to effect the over leveraged and a thirty to forty percent fall would just return us to normality .
A lot of discretionary spending is based on the "wealth effect" where people feel more prosperous and can treat themselves due to comfort of equity in their homes but a housing crash negates the wealth effect and discretionary spending is punished
Z1P Price at posting:
$2.70 Sentiment: None Disclosure: Not Held
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