myproblem, maybe a better question would be 'how could property prices increase 20% during the 2nd worst financial crisis in history'
The reason answers both questions - because the massive stimulatory efforts of the govt not only halted what would have been a natural market correction, but blew it right over the top and out of reach of the folk who make up the foundation of the housing market. Now its mainly established investors playing pass the parcel.
Once the foundation of the pyramid starts to crumble, then its not long before the whole lot starts to wobble. We are witnessing the beginning of that process right now.
