Your comment below i thought was spot on about oz since this property boom.
"A lot of folk around here still spend a lot of money trying to look rich. If we do have a fall, it will hurt pride and lifestyle in a big way. "
I have been away for more than a decade from Australia but regularly returned to see family etc and i have noticed such a change in social dynamics of society and the ranking that real estate has created in mindsets! Same thing happened here in england as well to be honest but in some ways it was always here with the class system!
I really do think we will see 15-20% drops over the next 2-3 years and it will a slow deflation in my opinion with the eventual increase in rates.
One thing i would say to TC is that i have had a realestate alert on property for sale in the areas that you mentioned. When i started the alert in late 2009 to september/october last year there had not been that many properties coming onto market with 1-2 emails a week with a summary of properties. The last 3 - 4 months i am getting an email every day with multiple properties for these areas. The increase in supply has been quite noticeable and i think the next 6-12 months may see a downward pressure on prices due to increased supply.
