"The Economist is not worth the paper it is written on. Where were they prior to the GFC?"
interesting comment. So what you are saying because they didnt recognize a bubble in housing before, even with the benefit of hindsight they still cant recognize one now?
"One thing people need to understand about housing in Australia. If home prices fall people who have bought their homes and live in it and it is not used for investment, will still keep paying their mortage and live in their home."
"Unlike in the USA you cannot just walk away from your Mortgage in Australia."
Not being able to walk away from your house wont stop the price from falling, even a strong economy and high employment wont be able to stop it. housing bubbles have deflated from just such a situation. sure it wont be as dramatic/quick a fall, but in Japan prices just keep falling and after a brief stabilization and rise before the GFC they will continue to fall most likely, but thats because of an ageing population
