30 to 50% down in australia, page-139

lispingduck,

Re your below numbers, the historical norm is about three times earnings (in the USA it's 2.6)

Lets be generous to the bulls, say four x $65,000 = $260,000

And there you have your 50% correction.

Sooner or later all prices/rates return to their historical norm.
---------------

Australian median household income 2013 - $65,000
x

7.2

=

$468,000

January 2014 Australian median house price - $508,000

$508,000 - $468,000

= 7.8% contraction possible in 2014..