california, florida, sydney or melbourne, it doesn't matter. i was talking about what happens when debt becomes viewed negatively, people realise they have too much of it and when owners see that there are ever increasing properties on the market and start to jostle for the exit.
to say that you can't imagine a 50% fall is anchoring to present conditions which stand to change significant;y should we see disruptions in employment due to macro environment (e.g. commodity slow down, increase in cost of foreign borrowing etc).
in various place in the world over the last 5 years, falls of the order of 40-50% from the peak have been realised.
human nature and psychology is global so observed price trends that have recently occurred elsewhere in the world have every bit to do with the australian market and predictions, given that we are one of the last major markets not to see a significant retrace in prices.
